Remote disabling of target point-of-sale (“POS”) terminals

ABSTRACT

In response to detecting imposition of an erroneous surcharge, a point-of-sale (“POS”) terminal used to impose that surcharge may be disabled. A remote server may be programmed to power down the POS terminal. For example, in response to detecting a surcharge violation, a remote server may transmit a disable signal to the POS terminal that triggered the surcharge violation. The disable signal may power down the POS terminal. The remote server may be programmed to power up a POS terminal or otherwise bring the POS terminal back online. A payment instrument that includes a chip may programmed such that when the chip is inserted into the POS terminal or an associated card reader, it triggers a disabling of the POS terminal. Servers that process transactions may be programmed to ignore or reject transactions received from a POS terminal that triggers a surcharge violation.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation-in-part of U.S. patent applicationSer. No. 14/476,958, filed on Sep. 4, 2014, which is a continuation ofU.S. patent application Ser. No. 13/705,727, tiled on Dec. 5, 2012, nowU.S. Pat. No. 8,972,293, both of which are hereby incorporated byreference in their entireties.

FIELD OF TECHNOLOGY

Aspects of the disclosure relate to providing apparatus and methods fordetermining compliance with surcharge rules in connection with atransaction between two or more transaction participants (hereinafter“TP”).

BACKGROUND

In a transaction, a customer (the “customer”) may purchase from amerchant (“the merchant”) goods or services (“the product”) usingcredit. The credit may be extended to the customer by an issuing bank(the “issuer”). The issuer may authorize the transaction beforeextending credit to customer. The merchant may present the transactionto an acquiring bank (the “acquirer”). Each transaction presented to theacquirer may be embodied in a transaction record. The acquirer pays themerchant for (and thus “acquires”) the product. A transaction processingnetwork in communication with the issuer and the acquirer settles thetransaction between the issuer and the acquirer. The transactionprocessing network may collect transaction processing network fees fromthe issuer and the acquirer in connection with the settlement.

Settling the transaction may include the transaction network receiving aplurality of transactions from the acquirer. Each transaction may beembodied in a transaction record. Each of the plurality of transactionrecords may comprise an amount authorized by the issuer. In response toreceiving the transaction records, the transaction network may debit anaccount of the issuer. The debit may correspond to the amount authorizedby the issuer. The transaction network may credit an account of theacquirer. The amount credited to the acquirer may correspond to theamount authorized.

Settlement may include a transfer of funds between two or more TPs. Thetransfer may be a “book transfer,” an inter-bank transfer or anysuitable transfer between the TPs. A settlement network may transfer thefunds between TPs. Illustrative settlement networks may include theFederal Reserve Wire Network (“Fedwire”) and other suitable settlementnetworks that are well known to those of ordinary skill in the art. Thesettlement network may be any suitable network linking one or moreaccounts of TPs.

One TP may impose a transaction cost upon another TP for participatingin the transaction. The transaction cost may be referred to as“interchange.” Interchange may be a fixed fee and/or a percentage of thepurchase amount. Interchange may be a fixed fee and/or a percentage ofthe transaction cost. Interchange may be determined based on one or morerules set by a TP.

Interchange flows from the acquirer, through the transaction processingnetwork, to the issuer. For example, the issuer may transfer to theacquirer an amount net interchange. The issuer typically usesinterchange to cover costs of acquiring credit card customers, servicingcredit card accounts, providing incentives to retain customers,mitigating fraud, covering customer credit risk, group compensation andother expenses.

The acquirer may deduct a transaction cost from the amount that theacquirer pays the merchant in exchange for the product. The transactioncost may cover the acquirer's transaction processing network fee,interchange, and other expenses. The transaction cost may include aprofit for the acquirer.

FIG. 1 shows typical credit card transaction settlement flow 100. Flow100 involves TPs such as the merchant, the customer, and transactionservice providers that are identified below. At step 1, the merchantprovides information, relating to a proposed transaction between themerchant and a customer, to a transaction authorization and clearanceprovider. The transaction authorization and clearance provider may be atransaction processing network. The transaction authorization andclearance provider may provide transaction authorization and clearanceinformation to the merchant. The transaction authorization and clearanceinformation may include authorization for the transaction to proceed.

At step 2, the merchant provides $100 in product to the customer. Thecustomer pays with a credit card. At step 3, the issuer transmits to thecustomer a statement showing the purchase price of ($100.00) due. Theissuer collects the purchase price amount, along with interest and feesif appropriate, from the customer. At step 4, the issuer routes thepurchase price amount of ($100.00) through the transaction processingnetwork to the acquirer. At step 5, the acquirer partially reimbursesthe merchant for the purchase price amount. In the example shown in FIG.1, the partial reimbursement is $98.00. The difference between thereimbursement amount ($98.00) and the purchase price amount ($100.00) isa two dollar ($2.00) transaction cost.

At step 6, the acquirer pays a transaction cost ($1.50), via thetransaction processing network, to the issuer. At step 7, both theacquirer and the issuer pay a transaction cost ($0.07 for acquirer and$0.05 for the issuer) to the transaction processing network.

TABLE 1 Net positions, by participant, based on settlement flow 100(shown in FIG. 1). Participant Net ($) Issuer 1.45 Acquirer 0.43Transaction processing network 0.12 Merchant −2.00 Customer 0

In settlement 100 (shown in FIG. 1), the transaction cost is based on anexemplary merchant discount rate of 2%. The $1.50 interchange is basedon an exemplary interchange rate of 1.5%. The sum of the transactionprocessing network fees ($0.07 and $0.05) is based on a total exemplarytransaction processing network fee rate of 0.12%.

Transaction processing networks and transaction processing networkservices are offered under trademarks known to those of ordinary skillin the art. Transaction processing networks may set interchange rates.Issuers may set interchange rates. Interchange rates may vary for eachtransaction processing network. Interchange rates may vary based onmerchant type and size, transaction processing method, transactionvolume and other factors.

A merchant, or other TP, may impose a surcharge for accepting a creditcard, establish minimum or maximum purchase price amounts or refuse toaccept selected payment credit cards. The surcharge may allow themerchant to recover some or all of the transaction cost charged to themerchant by other TPs. The surcharge imposed by the merchant may bedetermined and/or limited based on a total transaction cost associatedwith the transaction. The total transaction cost may includeinterchange, the merchant discount and network fees.

It would be desirable, therefore, to provide apparatus and methods forauditing a transaction for compliance with one or more surcharge rules.

BRIEF DESCRIPTION OF THE DRAWINGS

The objects and advantages of the disclosure will be apparent uponconsideration of the following detailed description, taken inconjunction with the accompanying drawings, in which like referencecharacters refer to like parts throughout, and in which:

FIG. 1 shows a prior art scenario;

FIG. 2 shows illustrative apparatus in accordance with the principles ofthe disclosure;

FIG. 3 shows an arrangement in which apparatus and methods in accordancewith the principles of the disclosure may be used;

FIGS. 4-8 show illustrative apparatus in accordance with the principlesof the disclosure;

FIG. 9 shows illustrative information in accordance with the principlesof the disclosure;

FIG. 10 shows an illustrative scenario in accordance with the principlesof the disclosure;

FIGS. 11-15 show illustrative information in accordance with theprinciples of the disclosure;

FIG. 16 shows an illustrative scenario in accordance with the principlesof the disclosure;

FIG. 17 shows illustrative information in accordance with the principlesof the disclosure;

FIG. 18 shows an arrangement in which apparatus and methods inaccordance with the principles of the disclosure may be used;

FIG. 19 shows illustrative apparatus in accordance with the principlesof the disclosure;

FIG. 20 shows illustrative apparatus in accordance with the principlesof the disclosure;

FIG. 21 shows an illustrative scenario and apparatus in accordance withthe principles of the disclosure;

FIG. 22 shows illustrative apparatus in accordance with the principlesof the disclosure;

FIG. 23 shows an illustrative scenario and associated apparatus inaccordance with the principles of the disclosure;

FIG. 24 shows an illustrative apparatus in accordance with theprinciples of the disclosure

FIG. 25 shows an illustrative scenario and associated apparatus inaccordance with the principles of the disclosure; and

FIG. 26 shows an illustrative process in accordance with the principlesof the disclosure.

DETAILED DESCRIPTION OF THE DISCLOSURE

Apparatus and methods for performing an audit of a transaction areprovided. The transaction may involve an acceptance of a paymentinstrument by a merchant. The transaction may involve a credit, debit,prepaid, automated clearing house, or any suitable payment methodinvolving the transfer of funds from one TP to another.

The transaction may be a transaction in any state of completion. Thetransaction may be a prospective transaction. The prospectivetransaction may include the customer presenting the payment instrumentto pay for the product. The prospective transaction may include themerchant collecting payment instrument information from the customer.

The transaction may be a pending transaction. For example, a transactionmay be pending prior to receiving authorization from the issuer. Thetransaction may be pending during a time between receiving theauthorization and settlement. The transaction may be pending during atime prior to collection, by the issuer, of the purchase amount from thecustomer.

The transaction may be an executed transaction. Executing thetransaction may include a first TP passing the transaction along to asecond TP. An executed transaction may include a transaction that hasbeen authorized and settled.

The transaction may be associated with one or more TPs providingtransaction services. Each transaction service may be performed by a TP.In some circumstances, a participant may perform more than one of theservices. Each participant may charge a fee for providing the service.The fee may be charged to one or more of the other participants (asshown in FIG. 1). Table 2 shows illustrative TP types.

TABLE 2 Illustrative transaction participant types. Illustrative TPTypes Merchant Customer Authorization service provider Clearance serviceprovider Settlement service provider Issuer Network Acquirer Transactionbroker

More than one participant of a given type may be available toparticipate in the transaction. Different participants of the same typemay have advantages and/or disadvantages relative to the otherparticipants of that type. For example, one issuer may be a member of alending consortium while another is not a member, one transactionprocessing network may require payment of a relatively small interchangefee while another network may require payment of a relatively largeinterchange fee, and the like.

Illustrative transaction services are listed in Table 3.

TABLE 3 Illustrative transaction services. Illustrative TransactionService Sale of goods to customer Authorization of customer creditClearance of customer credit Notice of customer balance Invoice ofcustomer for bank service Invoice of network fee Invoice of interchangefee Matching of acquirer and issuer Acquisition of goods Collection ofbalance from customer Settlement of merchant account Transfer of fundsto acquirer Debit of funds from issuer

The payment instrument may include a credit card and/or other forms ofpayment instruments. Such other forms of payment instruments mayinclude: cash, a check, a debit card, credit card, an instrument ordevice that includes a chip, such as an ISO14443-compliant contactlesschip, a smart phone, a tablet computer, a transponder or any othersuitable electronic purchasing devices. Payment instruments may storedata in a magnetic strip, a bar code, a silicon chip, non-volatilecomputer readable media or any other suitable data storage device orformat. The merchant may provide a point-of-sale (“POS”) terminal thatis configured to receive data from, provide data to, or exchange datawith the payment instrument.

The payment instrument may be presented to the merchant by the customeras payment for the product. A transaction cost may be associated withacceptance, by the merchant, of the payment instrument as a form ofpayment. The transaction cost may be an acceptance cost associated withthe payment instrument.

The acceptance cost may include a fee a merchant pays to other TPs. Thefee may enable the merchant to accept a payment instrument as form ofpayment for a product. Payment of the fee may enable the merchant totransmit/receive payments to/from a transaction network or acquirerassociated with the payment instrument.

A TP (hereinafter “TP”) that pays transaction fees to other TPs mayimpose a surcharge to recoup one or more transaction fees. The surchargemay correspond to an amount charged in addition to a product price. Thesurcharge may be associated with a particular payment instrument.

The TP may impose the surcharge to generate a revenue stream. The TP mayimpose the surcharge on any other suitable TP. For example, the TP mayimpose the surcharge on a customer or acquirer.

The surcharge may be defined by one or more surcharge attributes. Thesurcharge attribute may be any suitable attribute of the surcharge. Forexample, a surcharge amount may be a surcharge attribute. The surchargeamount may correspond to an amount charged by a TP to accept a paymentinstrument. The surcharge amount may be charged to a customer that paysfor a product using the payment instrument. The surcharge amount may becharged to the customer by a merchant that accepts the paymentinstrument as a form of payment. The surcharge amount may correspond toall or a portion of the merchant discount paid by the merchant.

The surcharge amount may be determined based on a percentage of thepurchase amount. The surcharge amount may be determined based on apercentage of the transaction cost. The surcharge amount may be a flatfee. The surcharge amount may be a combination of a flat fee and apercentage of the purchase amount. The surcharge amount may be anysuitable monetary amount.

For example, a surcharge imposed by a merchant may be associated withsurcharge attributes corresponding to a surcharge amount, a region, aMCC and a payment instrument. Based on the surcharge attributes, asurcharge may be imposed on a purchase made within the region at thelocation associated with the MCC using the payment instrument.

The surcharge attribute may include a surcharge fraction (hereinafter“SF”). The surcharge amount may be determined based on the surchargefraction. The surcharge amount may correspond to a fractional portion ofthe transaction cost. The surcharge amount may correspond to afractional portion of the purchase amount.

The fractional portion may be a product of the SF and the transactioncost. An exemplary SF may be defined by 0≦SF≦1. For example, if the SFis 0.3, the fractional portion may be approximately ⅓ of the transactioncost. The SF may be determined based on a performance metric. The SF maybe associated with a transaction attribute.

The SF may be one. When the SF is one, the surcharge may correspond tothe entire transaction cost. The SF may be zero. A SF of zero maycorrespond to no imposition of a surcharge. When the SF is one, thecustomer may bear the transaction cost. When the SF is zero, themerchant may bear the transaction cost. When the SF is between zero andone, the transaction cost may be shared by the merchant and customer.

The surcharge attribute may include a type of the payment instrument.The type of payment instrument may correspond to a brand associated withthe payment instrument. The brand may correspond to a transactionprocessing network that processes transactions initiated using thepayment instrument. The type of payment instrument may correspond to aproduct-type associated with the payment instrument. The product-typemay correspond to a “rewards card” or other suitable features of thepayment instrument. The TP may impose a surcharge based on specificattributes associated with the brand and/or product-type.

Exemplary surcharge attributes are listed below in Table 4.

TABLE 4 Illustrative Surcharge Attributes. Illustrative SurchargeAttributes Surcharge fraction Total surcharge amount Fixed fee amountPayment instrument Payment instrument product type Merchant categorycode Product stock keeping unit (“SKU”) Transaction network IssuerSurcharge imposition start time Surcharge imposition end timeTransaction location Transaction time

The transaction may be associated with one or more transactionattributes. The transaction cost may be based on the one or more of thetransaction attributes. The transaction record may include one or moresurcharge attributes. A surcharge attribute may include one or morecharacteristics of a transaction attribute.

A transaction record may be generated based on transaction attributesreceived and/or available at a time of purchase. Each transaction recordmay include one or more fields. Each field may include an attributeassociated with the transaction. The attribute may be represented by avalue. The value may be stored in the field of the transaction record.

Table 5 shows illustrative transaction attributes and associated values.

TABLE 5 Illustrative transaction attributes and associated values.Illustrative Transaction Attributes Illustrative Associated ValueGeographic Longitude/latitude GPS coordinates Map coordinates ElevationDepth Distance from a point Address Zip code Area code County StateCountry IP address Signal triangulation Temporal Seconds Minutes HoursDay Week Month Year Duration Synoptic Weather at time of transactionStock market performance at time of transaction Political party in powerat time of transaction TP credit risk Transaction amount DollarsAvailable credit Currency Foreign exchange rate Low value purchaseNumber of items purchased Number Number of distinct stock keeping units(“SKU”) Purchase amount per item Merchant category code Numericalidentifier Taxation status Associated acquirer Surcharge Surchargeamount Surcharge fraction Maximum surcharge Minimum surcharge Percentageof purchase Fixed amount Payment instrument identifier Brand RewardsTransaction Network Issuer Affinity Loyalty program Rewards/pointbalance Membership level Duration of membership Frequency of use AccessChannel Point-of-sale Automated teller machine Online portalSelf-service kiosk Mobile device In personSurcharge Compliance Registry

Apparatus and methods may include one or more non-transitorycomputer-readable media storing computer-executable instructions. Thecomputer executable instructions, when executed by a processor on acomputer system, may perform a method for determining a surchargecompliance score.

The methods may include receiving a surcharge compliance record (“SCR”).The SCR may be received from a mobile device. The methods may includereceiving a proof-of-compliance record (“POCR”). The POCR may bereceived from the mobile device. The POCR may include proof ofinformation in the SCR. The methods may include determining a compliancescore based on the SCR and/or the POCR. The compliance score may be madeavailable to the public. The compliance score may be posted on awebsite.

The SCR may include a plurality of compliance attributes. Eachcompliance attribute may be represented by a value. The complianceattributes may correspond to a surcharge amount, a purchase amount, apayment instrument identifier, a merchant identifier or any suitabletransaction attribute. The compliance attribute may correspond to atransaction attribute.

For example, a customer may purchase a product from a merchant. Themerchant may impose a surcharge on credit card transactions that occurat a merchant location. The merchant location may be any suitablelocation such as a “brick and mortar” location or an e-commerce website.After purchasing the product and paying the surcharge, the customer mayreport whether the surcharge was properly imposed on the transaction.

To create the SCR, the customer may open an application on a mobiledevice. The application may present a digital form to the customer. Theapplication may present the digital form to the customer based on adetected location of the customer. For example, the location of themobile device may indicate that the customer is at the detectedlocation. Based on the detected location, the customer may be promptedto complete the digital form. Based on the detected location, thecustomer may not be prompted to enter a location where the transactionoccurred. Location information may be pre-filled in the form when thecustomer opens the form.

As a further example, a customer may pay for a purchase by presentingcredit card information stored on a mobile device. The mobile device maytransmit the credit card information to a merchant's point-of-saledevice. After the customer confirms the transaction, the mobile devicemay prompt the customer to complete a SCR. The mobile device may presentthe digital form to the customer.

The digital form may prompt the customer to confirm whether thesurcharge was properly determined. The digital form may prompt thecustomer to enter one or more surcharge attributes. The digital form mayprompt the customer to confirm whether the merchant posted signsinforming patrons that a surcharge will be imposed on a transaction. Thecustomer may complete the digital form and transmit the form. Bysubmitting the form, the customer may indicate that the merchant orother TP has properly imposed a surcharge.

The digital form may include pre-filled information. The pre-filledinformation may include one or more transaction attributes. Thepre-filled information may be determined based on a detected location ofthe mobile device. The pre-filled information may be determined based ona detected time, such as a time of submission of a completed form.

In some embodiments, the customer may swipe a credit card, or otherpayment instrument, at a merchant's point-of-sale terminal. In someembodiments, the customer may enter credit card information into anonline form when checking out of an e-commerce website. The digital formmay be presented to the customer as part of the checkout process. Thedigital form may display the maximum allowable surcharge and prompt thecustomer to confirm that the merchant has not imposed a surchargegreater than the maximum. The customer confirmation may be a complianceattribute.

The form may be received by an entity that tracks surcharge compliance.The entity may be a TP such as an acquirer or a third party. To supportthe customer's confirmation that the surcharge is proper, the POCR maybe attached to the SCR.

The POCR may include an image, a location stamp, a time stamp or anysuitable information. For example, the customer may photograph a signposted by the merchant. The sign may display one or more surchargescurrently in effect at a merchant location. The sign may display asurcharge that will be imposed at a future time.

The customer may photograph a receipt issued by the merchant. Thereceipt may include one or more transaction attributes. For example, thereceipt may include a payment instrument and surcharge amount imposed onthe transaction.

The methods may include identifying a segment of the image. The methodsmay include extracting information from the segment. The extractedinformation may correspond to a transaction attribute. For example, acustomer may obtain an image of a receipt. The receipt image may includea plurality of segments. A segment may be demarcated by a label. Thelabel may indicate what type of information may be obtained from thesegment. If a segment includes a “time” label, a transaction attributecorresponding to a time value may be extracted from the segment.

Determining the compliance score may include comparing a complianceattribute of the SCR to a transaction attribute extracted from a segmentof the proof-of-compliance record. For example, a customer may assert inthe SCR, that at a specified merchant location, a surcharge has beenproperly imposed on a transaction. A segment of a receipt image may beidentified. The segment may correspond to an address. The extractedaddress may be compared to the specified merchant location. Theextracted address may confirm that the receipt was issued at thespecified merchant location.

The methods may include determining an authenticity score based on thecomparing. The methods may include determining the compliance scorepreferably only when the authenticity score is above a threshold.

Determining the compliance score may include receiving a first surchargeattribute. The first surcharge attribute may be received from a TP orany suitable party. The methods may include comparing a second surchargeattribute to the first surcharge attribute. The second surchargeattribute may be extracted from a segment of the proof-of-compliancerecord. The second surcharge attribute may be extracted from a segmentof the image.

For example, the customer may assert in a SCR that a merchant hasimposed a proper surcharge amount to a transaction. A segment of areceipt image may be identified. A payment instrument type may beextracted from the segment. Based on a set of surcharge rules theextracted payment instrument type may be identified as beingsurchargeable. Based on a set of surcharge rules the extracted paymentinstrument type may be identified as being unsurchargeable.

The set of surcharge rules may include one or more surcharge rules. Asurcharge rule may be any requirement imposed on a transaction. Thesurcharge rule may be any rule that effects a determination of one ormore surcharge attributes. The surcharge rule may be set by a TP or athird party such as a federal or state government.

Based on the extracted payment instrument type, the SCR assertion may becorroborated. For example, credit cards may be surchargeable and debitcards may be unsurchargeable. If the customer submits a SCR and theextracted payment instrument type corresponds to debit card, the SCR maybe disregarded.

The methods may include determining the surcharge compliance score basedon comparing the second surcharge attribute to the first surchargeattribute. When the first surcharge attribute corresponds to the secondsurcharge attribute, the surcharge indicated in the SCR may beclassified as “compliant.” When the first surcharge attribute does notcorrespond to the second surcharge attribute, the surcharge indicated inthe SCR may be classified as “non-compliant.” A compliant surcharge maybe assigned a higher score than a non-compliant surcharge. A SCR that isnot corroborated by an attached POCR may be disregarded and may have noeffect on the compliance score.

Determining the compliance score may include identifying a reportedsurcharge. The reported surcharge may be identified based on the SCRand/or the POCR. The reported surcharge may be identified based oninformation extracted from the segment of an image.

To identify the reported surcharge, the methods may include identifyinga plurality of transaction attributes. The transaction attributes may beidentified based on the SCR and/or the POCR. The identified transactionattribute may correspond to a surcharge amount. The reported surchargemay include the identified surcharge amount.

The methods may include determining a maximum allowable surcharge. Themethods may include comparing the reported surcharge to the maximumsurcharge. The compliance score may be determined based on whether thereported surcharge is greater than or less than the maximum surcharge.

The maximum surcharge may be determined based on a transactionattribute. The maximum surcharge may be determined based on a set ofsurcharge rules. A transaction processing network may define a surchargerules. A government agency may define surcharge rules. The surchargerules may define one or more surcharge attributes.

The maximum allowable surcharge may be determined based on a pluralityof transaction attributes and the set of surcharge rules. Exemplarytransaction attributes may include a transaction location, paymentinstrument or a merchant category code (“MCC”).

The methods may include adjusting a compliance rating. The compliancerating may be associated with a TP. The compliance rating may beassociated with a merchant. The compliance rating may be associated witha merchant location. The compliance rating may be based on a pluralityof compliance scores. The compliance rating may be determined based onthe compliance score. The compliance rating may be published and madeavailable to the public.

For example, a merchant may submit an entry to an online surchargeregistry. The entry may assert that the merchant will not surchargetransactions. Customers may submit SCRs confirming that the merchantdoes not surcharge. Customers may submit SCRs asserting that themerchant is imposing a surcharge. Based on the submitted SCRs, themerchant's compliance rating may be adjusted. If the SCRs confirm thatthe merchant is not surcharging, the merchant may receive a firstcompliance rating. If the SCRs indicate that the merchant is surchargingthe merchant may be assigned a second compliance rating. The adjustmentto the compliance rating may depend on a number of SCR received. Theadjustment to the compliance rating may depend on corroboratinginformation included in a number of POCRs attached to the SCRs.

Apparatus may include an article of manufacture that includes anon-transitory computer usable medium. The computer usable medium mayhave computer readable program code embodied therein. The program code,when executed by a processor may cause a computer to certify a surchargebehavior.

The surcharge behavior may be exhibited by a TP. Monitoring thesurcharge behavior may include tracking one or more surcharge attributesassociated with a surcharge. For example, monitoring the surchargebehavior may include monitoring the surcharge fraction imposed by amerchant on one or more payment instrument transactions.

The surcharge behavior may correspond to a surcharge schedule. Thesurcharge schedule may be implemented by a TP. For example, a merchantmay impose the surcharge schedule on customers that shop at one or moremerchant locations. The one or more merchant locations may be “brick andmortar” locations, online locations, mobile locations or any suitablelocation.

For example, a merchant may deploy sales agents at a location. Thelocation may be a trade show, an entertainment event, a political rallyor other temporary venues. The merchant may process transactions at thetemporary venue using a mobile device. The merchant may offer special orpromotional pricing scheme at the temporary venue. The promotionalpricing may include no surcharging at the temporary venue.

The surcharge behavior at the temporary venue may be associated with atransaction attribute corresponding to a geographic region. Thesurcharge behavior at the temporary venue may be associated with atransaction attribute corresponding to a mobile device configured toprocess transactions at the temporary venue.

The surcharge schedule may include imposing the surcharge at adesignated time. The schedule may include defining a price of a productif payment is made by a payment instrument. The schedule may indicate a“turn on” time and a “turn off” time associated with the surcharge. Themerchant may “turn on” a surcharge during morning hours, “turn off” thesurcharge during afternoon hours and “turn on” the surcharge duringevening hours. The merchant's surcharge behavior may correspond to thesurcharge schedule. The surcharge behavior may be monitored during atime period.

The program code may cause the computer to receive a transaction recordfrom a merchant. The program code may cause the computer to determine amaximum surcharge. The maximum surcharge may be determined based on thetransaction record. The maximum surcharge may be determined based on oneor more transaction attributes of the transaction record. The maximumsurcharge may be determined based on a plurality of transactionattributes. The plurality of transaction attributes may include alocation, a time, a payment instrument or any suitable transactionattribute.

The program code may cause the computer to identify a payment instrumentattribute within the received transaction record. The program code maycause the computer to determine a transaction cost associated with thepayment instrument attribute. The program code may cause the computer todetermine the maximum surcharge based on the transaction cost.

The program code may cause the computer to receive a surcharge schedulefrom the merchant. The program code may cause the computer to identify aplurality of payment instruments associated with the surcharge schedule.The program code may cause the computer to determine the maximumsurcharge based on a plurality of transaction costs. Each of thetransaction costs may be associated with one of the plurality of paymentinstruments. Each transaction cost may be set by a transactionprocessing network affiliated with the corresponding payment instrument.

For example, a merchant may accept payment instruments associated withfour transaction processing networks. A surcharge rule may state that amerchant not impose a surcharge that is greater than a transaction costassociated with any one of the four transaction processing networks. Thetransaction cost may be the lowest cost transaction processing network.The maximum surcharge may be determined based on the transaction costcorresponding to the lowest cost payment instrument.

As a further example, a first surcharge rule may state that a merchantmay not treat payment instrument “A” different than a debit cardtransaction. Government regulations may forbid the merchant fromimposing a surcharge on debit card transactions. A second surcharge rulemay state that the merchant may not treat payment instrument “B”different than payment instrument “A.”

The merchant may violate the first surcharge rule and impose a surchargeon transactions associated with payment instrument “A.” Because themerchant violated the first surcharge rule, the merchant will notviolate the second surcharge rule if the merchant imposes a surcharge ontransactions associated with payment instrument “B.” Apparatus andmethods may be configured to ignore surcharge violations resulting froma violation of the first surcharge rule. Apparatus and methods may beconfigured to identify surcharge violations associated with the secondsurcharge rule.

As yet a further example, the merchant may select a first transactionprocessing network to route a transaction. The transaction cost chargedby the first transaction processing may allow the merchant to charge thegreatest surcharge amount. The merchant's selection of the firsttransaction processing network may be based on violating one or moreterms of an agreement with a second transaction processing network.

Apparatus and methods may be configured to ignore surcharge violationsresulting from a violation of an agreement between the merchant and thesecond transaction processing network. Apparatus and methods may beconfigured to ignore surcharge violations resulting from a violation ofan agreement between the merchant and a TP other than the customer.Apparatus and methods may be configured to identify surcharge violationsresulting from a violation of an agreement between the merchant and thecustomer.

The program code may cause the computer to identify a payment instrumentattribute within the received transaction record. The program code maycause the computer to determine a transaction cost associated with thepayment instrument attribute. The program code may cause the computer todetermine the maximum surcharge based on the transaction cost.

For example, the payment instrument attribute may correspond to apayment instrument associated with a transaction processing network.Illustrative payment instrument attributes are shown below in Table 6.

TABLE 6 Illustrative payment instrument attributes Illustrative PaymentInstrument Attributes Brand (i.e., issuer, transaction network,acquirer) Customer name Expiration date Card security code (“CSC”) Cardverification data (“CVD”) Card verification value (“CVV,” “CVV2,” “iCVV”or “Dynamic CVV”) Card verification value code (“CVVC”) Cardverification code (“CVC” or “CVC2”) Verification code (“V-code”) Cardcode verification (“CCV”) Signature panel code (“SPC”) Customeridentification number (“CID”) Card account number Affinity Product(i.e., rewards card, platinum card, signature card, ect.)

The program code may cause the computer to determine an imposedsurcharge. The imposed surcharge may be determined based on thetransaction record. The program code may cause the computer to comparethe maximum surcharge to the imposed surcharge. The program code maycause the computer to transmit a surcharge certification. The surchargecertification may be transmitted when the imposed surcharge is less thanthe maximum surcharge.

The program code may cause the computer to print the surchargecertification. The surcharge certification may be printed on a receipt.The receipt may be issued to a customer. For example, a printedsurcharge certification may state: “The surcharge amount displayed onthis receipt is certified COMPLIANT by TP ‘A.’”

The program code may cause the computer to display a barcode. Thebarcode may be a two-dimensional barcode. The barcode may be a quickresponse (“QR”) code or any other suitable barcode. The two-dimensionalbarcode may encode the surcharge certification. The two-dimensionalbarcode may be readable by a mobile device. The two-dimensional barcodemay convey that the receipt includes a certified surcharge amount. Thetwo-dimensional barcode may convey that the receipt includes a surchargeamount that has been certified by a TP or third party audit.

The program code may cause the computer to monitor a number of surchargecertifications associated with the merchant. A surcharge certificationmay be issued for each transaction that complies with a set of surchargerules. The program code may cause the computer to monitor a number oftransactions associated with the merchant. The number may correspond totransactions processed by a TP during a pre-determined time period. Thecomputer may determine whether each transaction processed by the TPmeets a requirement for a surcharge certification.

The program code may cause the computer to determine a compliance scorebased on the number of certifications. The program code may cause thecomputer to determine a compliance score. The compliance score may bebased on a ratio of the number of surcharge certifications issued andthe number of transactions. The compliance score may reflect acompliance rate of a TP with the set of surcharge rules.

The program code may cause the computer to upload the compliance scoreto a website. The program code may cause the computer to display thecompliance score on the website.

The program code may cause the computer to receive a receipt. Thereceipt may be a transaction record. The receipt may be issued by a TP.The receipt may be issued by a merchant as a proof of purchase. Thereceipt may include a surcharge amount. The surcharge amount maycorrespond to an amount of funds paid by the customer for using aspecific payment instrument to pay for the purchase.

The program code may cause the computer to determine a transaction cost.The transaction cost may be determined based on the received transactionrecord. The program code may cause the computer to compare thetransaction cost to the surcharge amount. A first surcharge rule mayrequire that a surcharge amount not be greater than a transaction costassociated with a payment instrument. A second surcharge rule mayrequire that a surcharge amount not be greater than a maximum surchargeamount. The maximum surcharge amount may be less than the transactioncost. The program code may cause the computer to transmit the surchargecertification when the surcharge amount is less than the transactioncost, and the surcharge amount is less than the maximum surcharge.

Apparatus may include an article of manufacture comprising anon-transitory computer usable medium having computer readable programcode embodied therein. The program code, when executed by a processormay cause a computer to generate a surcharge compliance report.

The program code may cause the computer to receive a request for asurcharge compliance report. The request may be received from a mobiledevice.

The compliance report may include the compliance rating. The compliancereport may include the compliance score. The compliance report mayinclude an assessment of a TP's surcharge behavior. The compliancereport may include a current surcharge imposed at a merchant location.

The program code may cause the computer to determine a location of themobile device. The location may be determined based on a GPS signalreceived by the mobile device. The location may be determined based onsignal triangulation.

The program code may cause the computer to correlate the location to aplurality of merchant locations. For example, a merchant may be requiredto register with a central authority prior to imposing surcharge. Themerchant may submit to the central authority merchant locations where asurcharge will be imposed on transactions. Based on the locationdetermined by the mobile device, the computer may determine if themobile device is at a registered location.

The program code may cause the computer to receive a confirmation fromthe mobile device. The confirmation may correspond to at least one ofthe plurality of merchant locations. For example, the mobile device maybe in a vicinity of multiple registered locations. Each registeredlocation may be associated with a different merchant. The mobile devicemay be located in mall that includes a plurality of registeredlocations.

In response to a request for a surcharge compliance report, the mobiledevice may receive a list of registered merchant locations. The list mayinclude the plurality of merchant locations. A user of the mobile devicemay select one of the registered locations. The user of the mobiledevice may sort the list of registered locations. The list may be sortedfrom highest surcharge to lowest surcharge.

The program code may cause the computer to generate a surchargecompliance report associated with the at least one of the plurality ofmerchant locations. The compliance report may be generated for theselected merchant location. The program code may cause the computer totransmit the surcharge compliance report to the mobile device.

The request may include a plurality of surcharge attributes. Eachsurcharge attribute may be associated with one of the plurality ofpayment instruments. The plurality of payment instruments may be storedon the mobile device. The surcharge compliance report may include aplurality of compliance scores. Each of the compliance scores may beassociated with a merchant. Each of the compliance scores may beassociated with a merchant and one of the plurality of paymentinstruments.

For example, the mobile device may store information corresponding tothree payment instruments. A user of the mobile device may pay for apurchase by transmitting payment instrument information to apoint-of-sale device of a merchant. The user may wish to receive acompliance report that includes information relating to each of thethree payment instruments held by the user. The user may wish to receivea report that includes a compliance score or compliance ratingcorresponding to a merchant's surcharge behavior with respect to atleast one of the three payment instruments.

The program code may cause the computer to receive a surchargecompliance rating from the mobile device. For example, the user of themobile device may submit a SCR and/or POCR in response to receiving asurcharge compliance report. The user may wish to confirm that themerchant is properly applying a surcharge. The user may wish to informthe central authority of an irregularity in a surcharge behavior of amerchant. The irregularity may correspond to a surcharge violation.

When a request for a surcharge compliance report is a first request, aresponse to a second request for the surcharge compliance report may bebased on the surcharge compliance rating. For example, a surchargecompliance report may include an option for the viewer to submitfeedback on the report. When a user of the mobile device transmitsfeedback to the surcharge compliance report, a subsequent surchargecompliance report may be based on the feedback received from the user.The feedback may include reporting a surcharge violation. The feedbackmay include reporting surcharge compliance.

Apparatus may include an article of manufacture comprising anon-transitory computer usable medium having computer readable programcode embodied therein. The code when executed by a processor causes acomputer to determine a maximum surcharge.

The program code may cause the computer to receive a transaction recordfrom a merchant. In response to receiving the transaction record, theprogram code may cause the computer to receive a first surcharge from afirst transaction processing network. In response to receiving thetransaction record, the program code may cause the computer to receive asecond surcharge from a second transaction processing network.

The first and second surcharges may be received from a transactionbroker. The first surcharge may be the largest magnitude surcharge thatmay be imposed under a surcharge rule imposed by the first transactionnetwork. The second surcharge may be the largest magnitude surchargethat may be imposed under a surcharge rule imposed by the secondtransaction network.

The program code may cause the computer to compare the first surchargeto the second surcharge. The program code may cause the computer to setthe maximum surcharge equal to the first surcharge. The program code maycause the computer to set the maximum surcharge equal to the firstsurcharge when the first surcharge is greater than the second surcharge.The program code may cause the computer to set the maximum surchargeequal to the second surcharge. The program code may cause the computerto set the maximum surcharge equal to the second surcharge when thesecond surcharge is greater than the first surcharge.

In response to receiving the transaction record, the program code maycause the computer to receive a plurality of surcharges. The pluralityof surcharges may be received from a plurality of transaction processingnetworks. Each surcharge included in the plurality of surcharges may bethe largest magnitude surcharge allowed by a corresponding transactionprocessing network. The plurality of surcharges may be received from atransaction broker. The program code may cause the computer to rank theplurality of surcharges. The plurality of surcharges may be ranked inorder of magnitude. The magnitude may include a surcharge fraction. Themagnitude may include a fixed fee.

The program code may cause the computer to select the surcharge havingthe greatest magnitude. The program code may cause the computer to setthe maximum surcharge equal to the surcharge having the greatestmagnitude.

Surcharge Violation Registry

Apparatus and methods for reporting a surcharge violation are provided.The surcharge violation may correspond to an imposed surcharge that doesnot follow a surcharge rule. The surcharge rule may be one of a set ofsurcharge rules.

The surcharge rule may be set by a TP, such as a transaction processingnetwork. For example, the surcharge rule may state that all paymentinstruments accepted by a merchant must be identically surcharged. Thesurcharge rule may state that credit card transactions may only besurcharged in the same manner as a debit card transaction. The surchargerule may state that an imposed surcharge not exceed a transaction costassociated with a payment instrument used in the transaction. Thesurcharge rule may be any suitable surcharge rule.

The surcharge rule may be set by a government or a government agency.For example, a state may pass a law that forbids imposing a surcharge oncredit card transactions. The surcharge violation may correspond to asurcharge being imposed on a credit card transaction in the state. Afederal government may pass a law that forbids imposing a surcharge on adebit card transaction.

The method may include receiving an image of a transaction receipt. Theimage may be received from a mobile device. The method may includedetermining one or more surcharge attributes.

The one or more surcharge attributes may correspond to a location, atime, a total surcharge amount, a surcharge fraction, a fixed fee, apurchase amount, a payment instrument, a merchant or any suitablesurcharge attribute.

Determining the one or more surcharge attributes may include extractinginformation from the image. The information may be extracted from asegment of the image. The information may correspond to a paymentinstrument identifier, a merchant identifier, a surcharge amount, apurchase amount or any suitable information.

For example, a customer may purchase a product through an e-commercewebsite of a merchant. The merchant may transmit an electronic receiptto the customer. The electronic receipt may include a surcharge amountimposed on the transaction. The surcharge amount may be extracted fromthe electronic receipt.

The method may include comparing at least one surcharge attribute to atleast one surcharge reference value. The method may include identifyingthe surcharge violation based on the comparing. The comparing mayinclude comparing at least three of the surcharge attributes to at leastthree surcharge reference values.

The one or more or more surcharge reference values may correspond to afirst surcharge cap. The first surcharge cap may be associated with apayment instrument identifier. The first surcharge cap may be based on atransaction cost associated with the payment instrument identifier. Theone or more or more surcharge reference values may correspond to asecond surcharge cap. The second surcharge cap may be associated with amerchant identifier. The first and second surcharge caps may be set by aone or more surcharge rules. The first and second surcharge caps may beset by one or more government regulations or laws.

A surcharge reference value may correspond to a maximum surcharge. Themaximum surcharge may be defined by one or more surcharge rules. Themaximum surcharge may be equal to the lesser of the first surcharge capor the second surcharge cap. The maximum surcharge may include asurcharge fraction. The maximum surcharge may include a fixed fee.

The surcharge reference value may correspond to a maximum surchargeamount. The maximum surcharge amount may be determined based on themaximum surcharge and the purchase amount. For example, when the maximumsurcharge corresponds to a surcharge fraction, the maximum surchargeamount may be a product of the surcharge fraction and the purchaseamount.

The comparing may include comparing the maximum surcharge amount to thesurcharge amount. The surcharge violation may be identified when thesurcharge amount exceeds the maximum surcharge amount. A surchargeamount that exceeds the maximum surcharge amount may violate one or moresurcharge rules.

The method may include receiving a surcharge notice. The surchargenotice may be received from a merchant, an acquirer or any suitable TPor third party. The methods may include determining an advertisedsurcharge. The advertised surcharge may be determined based oninformation contained in the surcharge notice.

The surcharge notice may include one or more attributes of an advertisedsurcharge. For example, the surcharge notice may include a surchargeschedule. The surcharge schedule may include one or more surchargesimposed during a period of time. The surcharge notice may include asurcharge fraction associated with each surcharge. The surcharge noticemay include a time when each surcharge may be imposed. The surchargenotice may include a payment instrument that may trigger imposition of asurcharge.

The method may include comparing the advertised surcharge to one or moresurcharge reference values. The method may include identifying thesurcharge violation based on the comparing. The surcharge violation maycorrespond to an imposed surcharge that is different from the advertisedsurcharge. The advertised and imposed surcharge may differ with respectto any suitable surcharge attribute.

For example, an imposed surcharge may include a fixed fee that isgreater than the fixed fee associated with the advertised surcharge. Theimposed surcharge may have been imposed on a transaction during a timeperiod when the advertised surcharge would not have been imposed. As afurther example, the imposed surcharge may have been imposed on apayment instrument that is not associated with the advertised surcharge.

The method may include transmitting the surcharge violation to a TP. Forexample, the surcharge violation may be transmitted to a customer. Uponbeing informed of the surcharge violation the customer may be offered anoption to abort the transaction.

The method may include transmitting a disable signal in response to asurcharge violation. For example, when a surcharge violation isdetected, a disable signal may be transmitted to the device thatdetected and/or transmitted the surcharge violation. The device may be apoint-of-sale device. The device may be any suitable device fordetermining a surcharge. The disable signal may prevent operation of thedevice. A device that receives a disable signal may be re-enabled when amethod for determining the surcharge has been corrected.

As a further example, in response to detecting imposition of anerroneous surcharge, a POS terminal used to impose an erroneoussurcharge may be disabled. Disabling the POS terminal may includepowering down the POS terminal. The POS terminal may be powered down bya remote server. The remote server may be operated by any suitabletransaction participant. The remote server may transmit, over a network,instructions that powers down the POS terminal. The POS terminal may bepowered down for a pre-determined period of time.

The pre-determined period of time may correspond to a number of detectedsurcharge violations. If a POS terminal or merchant location isassociated with more surcharge violations, the POS terminal may bedisabled for a longer period of time.

The remote server may be programmed to power-up a POS terminal orotherwise bring the POS terminal back online. The remote server maybring the POS terminal back online after a predetermined period of time.

A disable signal may include programming a remote server to ignore orreject transactions received from a target POS terminal or targetmerchant location associated with a surcharge violation. The remoteserver may only reject or ignore transactions processed by the targetPOS terminal that are associated with one or more payment instrumentattributes, transaction attributes or surcharge attributes that werepresent in the transaction that triggered a surcharge violation.Illustrative payment instrument, transaction and surcharge attributesare shown above in Tables 4-6.

For example, disabling a target POS terminal may include programming thePOS terminal such that it is unable to process payments associated witha specific issuer, affinity agreement, transaction processing network orany suitable transaction attribute. Illustrative payment instrument,transaction and surcharge attributes are shown above in Tables 4-6.

A payment instrument may include a chip. The chip may be programmable.The chip may be an “EMV” chip. “EMV” is a technology that derives itsname from the companies (Europay, MasterCard, and Visa) that helpeddevelop the technology. When a payment instrument and its associatedchip are inserted into a card reader, the card reader may provide powerto the chip. The chip may generate a new authorization code each timethe payment instrument is used to conduct a transaction. A transactioninitiated using the payment instrument may not be processed with theauthorization code. Thus, the chip may provide added security becausesimply copying information printed on a face of the payment instrumentor encoded in the instrument's magnetic stripe may be insufficient toinitiate a fraudulent transaction.

A chip may be programmed with executable instructions. The chip may beprogrammed such that in response to detection of a surcharge violation,when the chip is inserted into a card reader associated with a targetPOS terminal, the executable instructions disable the target POSterminal.

For example, in response to detection of a threshold number of surchargeviolations at a merchant location, an issuer may determine that it isappropriate to disable one or more target POS terminals at the merchantlocation. The issuer may operate a network of automated teller machines(“ATMs”) or other service locations that include card readers. When apayment instrument provided by the issuer is used at the other servicelocation, a card reader may program the chip on the payment instrumentto disable one or more of the target POS terminals. After programming achip, when the chip is inserted into card reader associated with atarget POS terminal, executable instructions stored on the chip maydisable the target POS terminal.

Apparatus may include a system for controlling operation of a target POSterminal. The target POS terminal may be positioned at a merchantlocation. The system may control operation of two or more target POSterminals. The system may include a payment instrument. The paymentinstrument may include a programmable chip. The chip may be embedded inthe payment instrument.

The system may include a first card reader. The first card reader may beconfigured to provide power to the chip when the chip is inserted intothe card reader. In some embodiments, a power source on the paymentinstrument may power the chip. The chip may communicate with the cardreader. The card reader may program the chip with executableinstructions. The card reader may program the chip with executableinstruction that disable and/or re-enable a target POS terminal. Forexample, the chip may be programmed with executable instructions thatpower-off or power-on the target POS terminal.

The first card reader may be configured to program the chip in responseto detection of a surcharge violation triggered by a target POSterminal. The first card reader may part of an ATM. The ATM may bepositioned at a location remote from the merchant location. The ATM mayprogram the chip on the payment instrument. The ATM may program the chipwith executable instructions that execute when the chip is inserted intoa second card reader.

A computer system associated with an issuer of the payment instrumentmay detect that the customer (e.g., a user of the payment instrument)has been charged a surcharge amount that violates one or moresurcharging rules. In response to detection of the surcharge violation,the computer system may configure one or more card readers controlled bythe issuer to program a chip on the payment instrument with executableinstructions.

In some embodiments, the computer system may configure the card readersto program a payment instrument of a customer that is different from thecustomer subjected to the surcharge violation. For example, a computersystem of an issuer may detect a threshold number of surchargeviolations at a merchant location. In response to detecting thethreshold number of violations, a computer system of the issuer mayanalyze transaction histories associated with one or more paymentinstruments provided by the issuer. The computer system may identify oneor more payment instruments that are expected to be used at the merchantlocation within a pre-determined period of time.

The computer system may configure one or more card readers to programchips on payment instruments associated with the identified customers.The computer system may program card readers at brick-and-mortarlocations, ATMs or card readers at other service location (e.g., gasstations) remote from the target merchant location.

The first card readers may load, onto a chip, computer executableinstructions that control power and/or operation of a target POSterminal at the merchant location. For example, an ATM or other cardreader may program a chip with instructions that are to be executed inresponse to the payment instrument being inserted into a second cardreader at the target merchant location. The instructions stored on thechip may be configured to detect and identify the second card readerand/or target merchant location.

The second card reader may be linked to a target POS terminal. Thesecond card reader may be configured to provide power to the chip. Thesecond card reader may be configured to extract executable instructionsstored on the chip. The second card reader may be configured to executeinstructions stored on the chip. The instructions, when executed by thesecond card reader, may disable the target POS terminal.

The instructions may disable a target POS terminal by powering-off thetarget POS terminal within a pre-determined period of time from a timethe chip was inserted into the second card reader. In some embodiments,the instructions may power-off a target POS terminal for apre-determined period of time. Instructions stored on the chip, whenexecuted, may power-off of a plurality of target POS terminals at atarget merchant location.

In some embodiments, the instructions may trigger a powering-on of oneor more disabled POS terminals. The target POS terminal may bepowered-on after the pre-determined period of time expires. In someembodiments, the instructions may trigger the powering on of the targetPOS terminal after the pre-determined period of time.

A system for controlling operation of a target POS terminal is provided.The system may control operation of the target POS terminal bytriggering a shutdown of the target POS terminal at a target location.

The system may include a payment instrument. The payment instrument maybe associated with a customer. The user may use the payment instrumentto pay for goods, services or conduct other transactions at one or moretarget locations. The payment instrument may include a programmablechip. The chip may be an “EMV” chip. Executable instructions may beloaded onto the payment instrument. For example, the instructions may bestored on a chip. The executable instructions may be run when the chipis inserted into a card reader at a target location.

The system may include a first card reader. The first card reader may belinked to a target POS terminal. The first card reader may be configuredto receive the chip. For example, the first card reader may receive thechip when the user presents the payment instrument as a form of payment.The first card reader may be configured to extract one or more paymentinstrument attributes stored on the chip.

The system may include a second card reader. The second card reader maybe configured to receive the chip. The second card reader may beembedded in or otherwise part of an ATM. The second card reader may bepositioned at a location remote from a target location.

When the chip is inserted into the second card reader, the paymentinstrument may be associated with at least one surcharge violationimposed by the target POS terminal. A computer system of a transactionparticipant (e.g., issuer, transaction processing network, etc. . . . )may identify the at least one surcharge violation and associate theviolation with the payment instrument.

In response to detecting the at least one surcharge violation, thecomputer system may configure the second card reader to set a flag onthe chip. The flag may indicate that payment instrument has been subjectto a surcharge violation by a target POS terminal. The computer systemmay also configure the second card reader to load executableinstructions onto the chip. The executable instructions may be loadedonto the chip when the chip is inserted into the second card reader.

When run, the executable instructions loaded onto the chip may trigger ashutdown the target POS terminal. The executable instructions may be runwhen the chip is received by the first card reader or any other cardreader associated or linked to the target POS terminal.

For example, in response to receiving a chip loaded with executableinstructions, the first card reader may detect that the flag has beenset on the chip. Based the flag, the target POS terminal may beidentified. The first card reader may then extract the executableinstructions stored on the chip. The first card reader may run theinstructions and trigger a shutdown the target POS terminal. In someembodiments, POS controller or other computer system may run theexecutable instructions. In some embodiments, the first card reader maydelete the executable instructions stored on the chip. Executableinstructions may be deleted after the first card reader extracts theinstructions.

The executable instructions may be configured to disable two or moretarget POS terminals at the merchant location. The second card reader(at the remote location) may be configured to program a plurality ofchips (associated with a plurality of payment instruments) withexecutable instructions. Each chip may be programmed with executableinstructions that are configured to shut down or otherwise disable oneor more target POS terminals.

In some embodiments, before programming the chip, a computer system mayestimate when a chip is expected to be inserted into the first cardreader linked to a target POS terminal.

When the estimate indicates that the chip is expected to be insertedinto the first card reader within a pre-determined period of time, theexecutable instructions may be loaded onto the chip.

The estimate may be determined based on a transaction history associatedwith a payment instrument. For example, a transaction history mayindicate how often a payment instrument is used at a target merchantlocation.

A computer system that determines the estimate may include the secondcard reader. The second card reader may be in electronic communicationwith the computer system. The second card reader may be one of aplurality of second card readers. Each member of the plurality of secondcard readers may be capable of loading executable instructions onto oneor more chips.

Each member of the plurality of second card readers may load executableinstructions onto payment instruments until the computer system detectsthat at least one instance of the executable instruction have been readby the first card reader at the target location. In some embodiments,the plurality of second card readers may continue to load executableinstructions onto payment instruments until the computer system detectsthat a target POS terminal has been disabled.

Methods for controlling operation of a POS terminal at a merchantlocation are provided. Methods may include detecting a threshold numberof surcharge violations triggered at a merchant location. The surchargeviolations may be imposed by one or more POS terminals at the merchantlocation.

A “target” location may be any suitable location. For example, amerchant location associated with the threshold number of surchargeviolations may be a target merchant location. A “target” POS terminalmay be any suitable POS terminal. For example, a POS terminal thatimposed a surcharge violation may be a “target” POS terminal.

Methods may include identifying a set of payment instruments. Eachmember of the set may be expected to be used at the target merchantlocation within a pre-determined period of time. Each payment instrumentin the set may include a programmable chip. Methods may includedetecting that a chip has been inserted into a card reader remote fromthe target merchant location.

Methods may include programming the chip inserted into the card readerwith executable instructions that disable a target POS terminal at thetarget merchant location. In some embodiments, methods may includeprogramming the chip with executable instructions that disable a targetPOS terminal at any suitable location.

Methods may include disabling the target POS terminal when the chip isinserted into a card reader linked to the target POS terminal. The cardreader may receive the chip. The card reader may extract executableinstructions stored on the chip. The card reader may run the disablinginstructions stored on the chip. The card reader may trigger a runningof the disabling instructions on any suitable local or remote computersystem.

Disabling a target POS terminal may include preventing the target POSterminal from communicating with a computer system of a transactionparticipant. For example, the instructions may prevent the target POSterminal from communicating with an issuer system or a transactionprocessing network. Disabling a target POS terminal may include poweringdown the target POS terminal.

Disabling may include preventing a target POS terminal from processingtransactions associated with one or more attributes of the paymentinstrument. For example, the disabling instructions may prevent thetarget POS terminal from processing transactions initiated by a paymentinstrument associated with a specific affinity agreement or expirationdate.

Before disabling a target POS terminal, methods may include transmittinga warning message to the target POS terminal. In some embodiments, thewarning message may be transmitted to a POS controller. The warningmessage may provide a time or period of time when the disabling willoccur.

In response receiving the warning the message, the target POS terminal(or associated POS controller) may transmit a compliance message to anissuer (or other transaction participant) system confirming that it hasbeen configured to comply with one or more surcharge rules. In responseto receiving the compliance message, methods may include abortingexecution of the disabling instructions.

Methods may include monitoring a number of surcharge violations. Thenumber of surcharge violations may be associated with a TP. For example,the number of surcharge violations may be associated with a merchant.The number of surcharge violations may be associated with a network ofmerchant locations. The number of surcharge violations may be associatedwith a checkout lane in a merchant location. The number of surchargeviolations may be associated with a credit card transactions submittedvia an e-commerce website.

The method may include determining a surcharge violation score. Thesurcharge violation score may be determined based on the number ofsurcharge violations. The surcharge violation score may be determinedbased on a ratio. The ratio may correspond to a ratio of the number ofsurcharge violations and a total number of transactions. The ratio mayrepresent a number of surcharge violations per transaction. Thesurcharge violation score may represent a likelihood that a transactionwill include a surcharge violation.

The method may include adjusting a transaction cost. The transactioncost may be adjusted based on the number of surcharge violations. Thetransaction cost may correspond to a merchant discount. For example, ifa merchant generates a large number of surcharge violations over aperiod of time, a transaction processing network may raise thetransaction cost charged to the merchant to process the merchant'stransactions.

Apparatus may include an article of manufacture comprising anon-transitory computer usable medium having computer readable programcode embodied therein. The program code when executed by a processor maycause a computer to register a surcharge violation. The surchargeviolation may be registered with a central authority. A registeredsurcharge violation may be published. A registered surcharge violationmay be posted on a website.

The program code may cause the computer to receive a surcharge violationnotice. The SCR may include the surcharge violation notice. Theviolation notice may be transmitted from a mobile device. The surchargeviolation notice may be transmitted by a customer that has beensurcharged. The surcharge violation notice may include one or moresurcharge attributes. The surcharge violation notice may indicate why asurcharge is in violation. A surcharge violation indication may beselectable for review by the surcharged customer.

The surcharge violation notice may include a receipt. The surchargeviolation notice may include an image. The image may include a signdisplaying one or more surcharge attributes. The image may include atransaction receipt. The second location may correspond to a streetaddress. The street address may be extracted from the receipt.

The program code may cause the computer to determine a distance. Thedistance may correspond to distance between a first location and asecond location. The first location may be determined by a mobiledevice. The second location may be a point of reference associated witha merchant location. The second location may be derived from thesurcharge violation notice.

The first location may correspond to a global positioning system (“GPS”)coordinate. The first location may be determined by the mobile device ata time an image is captured by the mobile device. The first location maycorrespond to a location stamp associated with the image. The firstlocation may be determined by the mobile device simultaneous to paymentinstrument information transmission. The payment instrument informationmay be transmitted from a mobile device to a point-of-sale terminal ofthe merchant.

For example, the first location may be a longitude/latitude coordinate.The coordinate may be determined at a time a customer obtains one ormore surcharge attributes. The customer may obtain a surcharge attributeby photographing a displayed surcharge. The surcharge may be displayedon a transaction receipt. The surcharge may be displayed on a signproximate to a merchant location. The surcharge may be displayed on awebsite.

The program code may cause the computer to register the surchargeviolation. The surcharge violation may be registered when the distancebetween the first location and the second location is less than athreshold value. When the distance is less than the threshold value, thesurcharge violation notice may be associated with a merchant location.

For example, the threshold value may correspond to a radius extendingfrom the second location. The radius may extend from a merchantlocation. When the first location determined by the mobile device iswithin the radius, the first location may be in or near the merchantlocation. Being in or near the merchant location may providecorroboration that the surcharge violation notice is likely associatedwith the merchant location.

The computer readable program code may cause the computer to receive asurcharge violation notice. The surcharge violation notice may betransmitted from a mobile device. The computer readable program code maycause the computer to generate a surcharge record. The surcharge recordmay be generated based on the surcharge violation notice. The computerreadable program code may cause the computer to identify a surchargeviolation. The surcharge violation may be identified based on thesurcharge record.

The computer readable program code may cause the computer to identifythe surcharge violation based on comparing one or more attributes of thesurcharge record to one or more surcharge reference values.

The surcharge violation notice may include an image. The computerreadable program code may cause the computer to identify a plurality ofsegments in the image. The computer readable program code may cause thecomputer to determine one or more surcharge attributes based oninformation extracted from the one or more of the plurality of segments.The computer readable program code may cause the computer to identifythe surcharge violation by comparing the one or more attributes of thesurcharge record to one or more surcharge reference values. The computerreadable program code may cause the computer to register the surchargeviolation when the one or more attributes of the surcharge record do notcorrespond to one or more of the surcharge reference values.

The computer readable program code may cause the computer to compare alocation associated with the surcharge violation notice to a merchantlocation. The merchant location may be submitted by the merchant. Themerchant may submit a list of locations at which surcharging may occur.The list may be submitted to the central authority.

The computer readable program code may cause the computer to identify asurcharge rule. The surcharge rule may be in effect during a timeassociated with the surcharge violation notice. The time may be a timestamp associated with the surcharge violation notice. The time stamp maybe determined by the mobile device. The time stamp may be determined ata time that the surcharge attribute is obtained. The time stamp may bedetermined at a time an image of the surcharge is captured by the mobiledevice.

One exemplary surcharge rule may include imposing a surcharge based on apayment instrument attribute. For example, the surcharge rule may onlyforbid imposing a surcharge on a rewards card associated with aparticular transaction processing network.

Another surcharge rule may forbid imposing a surcharge on a paymentinstrument based on the issuer associated with the payment instrument.Another surcharge rule may forbid imposing a surcharge on a debit cardor a prepaid card. Another surcharge rule may forbid imposing asurcharge in a geographic location. The geographic location maycorrespond to a zip code, state borders, an area code or any suitablegeographic region.

The computer readable program code may cause the computer to registerthe surcharge violation when the location is within a predetermineddistance of the merchant location and the one or more of the surchargeattributes do not conform to the surcharge rule.

The surcharge violation may correspond to an improper surcharge amount.A surcharge amount may be improper if it results in a breach of anagreement with one or more TPs. The surcharge violation may correspondto an incentive offered at a point-of-sale. The incentive may include adiscount on the purchase price if payment is made using an alternativepayment method. The incentive may include offering a variable surchargethat is dependent on the issuer associated a payment instrument. Thesurcharge violation may be a surcharge that violates a law.

The surcharge violation may correspond to placement of a sign.Disclosure requirements associated with a surcharge may require that amerchant inform patrons of a surcharge before the patrons enter amerchant location. Disclosure requirements may require that a merchantinform patrons of a surcharge at a point-of-sale.

A customer may photograph an entrance to a merchant location. Thephotograph may show that there is no surcharge signage present at theentrance. A photograph of a point-of-sale may show that the surchargedisplayed at the point-of-sale differs from a surcharge charged to thecustomer.

The surcharge violation may correspond to a double surcharge. Forexample a surcharge rule may state that a single surcharge may beimposed on a transaction. The TP may impose two surcharges on atransaction.

The computer readable program code may cause the computer to transmitthe surcharge violation to an online registry. The registry may form arepository of surcharge violations. The registry may include surchargeviolations associated with a plurality of TPs. The registry may besearchable. A user may search the registry for surcharge violationsassociated with a TP, such as a merchant or issuer. A user may searchthe registry for surcharge violations based on a transaction attributesuch as a payment instrument, a location or a time. A user may searchthe registry for surcharge violations based on any suitable criteria.

Surcharge Auditing

Apparatus and methods for performing an audit of a transaction recordare provided. Apparatus may include an article of manufacture comprisinga non-transitory computer usable medium having computer readable programcode embodied therein. The program code when executed by a processor maycause a computer to audit the transaction record.

The computer readable program code may cause the computer to receive thetransaction record. The transaction record may be transmitted from a TP.The transaction record may be transmitted from a merchant. Thetransaction record may be transmitted from an acquirer. The transactionrecord may be transmitted from a mobile device.

The computer readable program code may cause the computer to determine asurcharge attribute. The surcharge attribute may be determined based onthe one or more transaction attributes. The transaction record mayinclude the one or more transaction attributes. The transaction recordmay include the surcharge attribute.

The computer readable program code may cause the computer to compare thesurcharge attribute to a surcharge reference value. The computerreadable program code may cause the computer to detect a surchargeviolation. The surcharge violation may be detected when the surchargeattribute does not correspond to the surcharge reference value.

The computer readable program code may cause the computer to identify apayment instrument identifier. The payment instrument identifier may beincluded in the transaction record. The payment instrument identifiermay correspond to a particular payment instrument. The paymentinstrument identifier may correspond to a payment instrument brand orproduct. A merchant identifier may be identified in the transactionrecord. The merchant identifier may correspond to a merchant. Themerchant identifier may correspond to merchant location. The merchantidentifier may correspond to a MCC. A purchase amount may be identifiedin the transaction record. The purchase amount may correspond to asub-total. The sub-total may not include a surcharge amount. A surchargeamount may be identified in the transaction record.

The computer readable program code may cause the computer to determine afirst surcharge-cap associated with the payment instrument identifier.The first surcharge-cap may correspond to a transaction cost associatedwith the payment instrument identifier. The computer readable programcode may cause the computer to determine a second surcharge-capassociated with the merchant identifier. The second surcharge-cap maycorrespond to a transaction cost associated with the merchant. Thesecond surcharge-cap may correspond to a transaction cost associatedwith a transaction processing network. For example, the secondsurcharge-cap may correspond to a product of 1.8 and the sum of: (1) anaverage interchange rate (e.g., 1.2%, 2%, (2%+10¢), etc. . . . ),charged by the transaction processing network and (2) average networkfees (e.g., 5¢, $1, $1.25, etc. . . . ) charged by the transactionprocessing network.

The computer readable program code may cause the computer to determine amaximum surcharge. The maximum surcharge may equal the lesser of thefirst surcharge-cap and the second surcharge-cap. The computer readableprogram code may cause the computer to determine a maximum surchargeamount based on the maximum surcharge and the purchase amount. Forexample, the maximum surcharge amount may include a sum of a fixed feeand the purchase amount. The computer readable program code may causethe computer to detect the surcharge violation when the surcharge amountis greater than the maximum surcharge amount.

The computer readable program code may cause the computer to determinewhether a plurality of stored transaction records include the surchargeviolation. The plurality of stored transaction records may be previouslyexecuted transactions. The plurality of stored transactions may bepending transactions.

The computer readable program code may cause the computer to determine acorrelation between two more stored transaction records. The correlationmay be determined using any suitable technique. For example, the one ormore transaction attributes may be linearly, or non-linearly, regressedupon the surcharge violation, modeled on the surcharge violation,predicted from the surcharge violation or estimated from the surchargeviolation. The correlation may be performed utilizing a multivariatestatistical model or a neural network. The correlation may includedetermining a correlation coefficient that indicates a degree ofcorrelation between a transaction attribute and the surcharge violation.

Each stored transaction record may include the surcharge violation. Thecomputer readable program code may cause the computer to determine asurcharge violation pattern based on the correlation. The computer mayidentify a pattern among the plurality of stored transaction records.The pattern may suggest a trend. The pattern may represent a statisticalrelationship. The pattern may be used to derive a performance metric.

For example, based on a correlation the computer may determine thatwithin a geographic region, the surcharge violation is correlated with apurchase of a particular item purchased at a specific time of day. Eachstored transaction record that “fits” into the pattern may be morelikely to include a surcharge violation than other transaction records.

As a further example, based on a correlation the computer may determinethat, when a payment processing device is used to calculate a surcharge,the surcharge is likely to be calculated incorrectly. The manufacturerand users of the device may be timely informed of the surchargecalculation error associated with the payment processing device.

The surcharge registry may be updated based on the detecting of asurcharge violation. The surcharge registry may maintain a list of eachsurcharge violation detected. The surcharge registry may maintain anassociation linking the surcharge violation to one or more transactionattributes. For example, the registry may link a surcharge violation toa merchant location where the transaction occurred. The registry maylink a surcharge violation to a payment instrument or to a customer.

The surcharge registry may include the correlation and/or patternsderived from the correlation. The registry may display a graphicalrepresentation of the correlation and/or patterns. The registry maydisplay the graphical representation in response to a query.

The computer readable program code may cause the computer to determine asurcharge violation pattern. The surcharge violation pattern may bedetermined based on a plurality of surcharge violations included in thesurcharge registry. The surcharge registry may include a plurality ofsurcharge violations. Each surcharge violation may be associated with adifferent transaction attribute. The pattern may correspond to atransaction attribute that is likely to be associated with a surchargeviolation. The pattern may correspond to a surcharge violation that islikely to be associated with a transaction attribute.

The computer readable program code may cause the computer to determine arefund amount. The refund amount may be associated with a transactionrecord. The refund amount may be associated with a transaction recordthat includes a surcharge violation. For example, a surcharge violationmay involve a merchant charging a customer a surcharge amount thatexceeds a maximum. The refund amount may correspond to a differencebetween the maximum allowable surcharge amount and the surcharge amountcharged by the merchant.

The surcharge violation may correspond to a surcharge amount that is inbreach of an agreement with one or more TPs. The surcharge violation maycorrespond to a double surcharge. The double surcharge may occur when amerchant imposes two surcharges on a single transaction.

As a further example, a double surcharge may result from a failure ofthe merchant to correctly calculate a surcharge refund due when an itemis returned to the merchant. A customer may purchase two or more itemsin a transaction. The customer may pay a surcharge based on a totalpurchase amount. At a later time, the customer may return one of theitems purchased. A surcharge rule may require that the merchant return apro-rata portion of the surcharge in addition to the price of thereturned item. A failure of the merchant to return the pro-rata portionof the surcharge may result in a double surcharge violation.

If the purchase is processed as a single transaction the merchant mayonly charge one surcharge. The refund amount may correspond to thesurcharge imposed on the extra transaction. The extra transaction may bethe transaction that occurs first in time. The extra transaction may bethe transaction that occurs second in time. The extra transaction may bethe transaction associated with a greater surcharge than the othertransaction. The extra transaction may be the transaction associatedwith a lesser surcharge than the other transaction.

The computer readable program code may cause the computer to transmit asurcharge violation notice. The surcharge violation notice may betransmitted to a point-of-sale terminal. The surcharge violation may betransmitted to a point-of-sale terminal in response to a detection ofthe surcharge violation. The surcharge violation notice may inform acustomer at the point-of-sale that a surcharge violation has beendetected. The customer may be offered an option to abort thetransaction.

The computer readable program code may cause the computer to waive thesurcharge in response to the detection of the surcharge violation. Forexample, a merchant may program a surcharge calculation device to waivea surcharge if a surcharge violation is detected when calculating thesurcharge.

The computer readable program code may cause the computer to transmit atransaction denial notice. The denial notice may inform a TP that asurcharge amount will not be charged to a customer account associatedwith the payment instrument. The denial notice may be transmitted inresponse to detection of the surcharge violation. When a surchargeviolation is detected the issuer may authorize the purchase amountexclusive of the surcharge amount. The surcharge amount may be denied.When a surcharge violation is detected the issuer may deny the entiretransaction. The surcharge violation notice may include the denialnotice.

In response to detection of a surcharge violation, a TP may restrict anability of the merchant who imposed the wrongful surcharge to processtransactions. The restriction may be imposed for a time period. Acertification process may be required to remove the restriction. Thecertification process may include the merchant submitting to atransaction audit. The transaction audit may be performed prior totransmitting a transaction record for authorization. The transactionaudit may be performed prior to authorizing the transaction.

The computer readable program code may cause the computer to associatethe transaction record with the surcharge violation. The transactionrecord may be associated with the surcharge violation when the surchargeattribute corresponds to a geographic location and the geographiclocation is within a jurisdiction that forbids imposing a surcharge on acredit card transaction. When the surcharge attribute corresponds to ajurisdiction that forbids imposing a surcharge, the surcharge amount maybe denied. When the surcharge attribute corresponds to a jurisdictionthat forbids imposing a surcharge, the purchase amount may be denied.

Apparatus may include an article of manufacture comprising anon-transitory computer usable medium having computer readable programcode embodied therein. The program code when executed by a processor maycause a computer to perform a surcharge violation audit.

The computer readable program code may cause the computer to identify afirst plurality of transaction records. The first plurality oftransaction records may include one or more records associated with afirst surcharge violation. Each record in the plurality of records maybe associated with the first surcharge violation.

The computer readable program code may cause the computer to identify asecond plurality of transaction. One or more records in the secondplurality may be associated with a second surcharge violation. Eachrecord in the second plurality may be associated with the secondsurcharge violation. The second plurality of transaction records may bea subset of the first plurality of transaction records. One or morerecords in the second plurality may be associated with the first and thesecond surcharge violations.

When the first surcharge violation is detected in a plurality ofrecords, it may be likely that the plurality of transaction records alsoinclude a second surcharge violation. A correlation may be determinedthat associates the first surcharge violation with the second surchargeviolation. When the first surcharge violation is detected in a pluralityof transaction records, the correlation may show that it is likely thatthe plurality also includes the second surcharge violation.

The computer readable program code may cause the computer to generate aplurality of surcharge records. The surcharge records may be generatedbased on the first plurality of transaction records. Each surchargerecord may include a first surcharge attribute. Each surcharge recordmay include a second surcharge attribute.

The computer readable program code may cause the computer to identifythe first surcharge violation. The computer readable program code maycause the computer to identify the second surcharge violation. The firstsurcharge violation may be identified if the first surcharge attributedoes not correspond to a first surcharge reference value. The secondsurcharge violation may be identified if the second surcharge attributedoes not correspond to a second surcharge reference value.

The first and/or second surcharge violation may correspond to asurcharge that is in breach of an agreement with a TP. The first and/orsecond surcharge violation may correspond to a double surcharge. Thefirst and/or second surcharge violation may correspond to a surchargeamount that is determined based on an unauthorized surcharge fraction.The surcharge fraction may be unauthorized with respect to the paymentinstrument, the merchant or with respect to any suitable transactionattribute. The surcharge fraction may be unauthorized because it isassociated with a surcharge amount that exceeds a maximum.

Apparatus may include an article of manufacture comprising anon-transitory computer usable medium having computer readable programcode embodied therein, the code when executed by a processor may cause acomputer to perform a chargeback audit.

The computer readable program code may cause the computer to receive achargeback record. The chargeback record may be generated when acustomer requests a refund for a purchase amount previously charged toan account associated with a payment instrument. The chargeback recordmay be generated when a customer attempts to a return a purchased itemto a merchant. The chargeback record may be generated when an acquirerattempts to obtain funds from an issuer and/or transaction processingnetwork. The chargeback record may include one or more features of thetransaction record.

The chargeback record may include a chargeback amount. The computerreadable program code may cause the computer to determine the chargebackamount. The chargeback amount may correspond to a refund amountrequested by a customer. The chargeback amount may correspond to arefund amount entitled to be credited to a customer account. Thechargeback record may include one or more chargeback attributes. Achargeback attribute may correspond to a transaction attribute.

The computer readable program code may cause the computer to identify asurcharge associated with the chargeback record. The computer mayidentify the surcharge based on detecting one or more chargebackattributes. For example, a chargeback attribute may correspond to abarcode associated with a purchased product. The barcode may be scannedwhen the customer returns the product. Based on the barcode, atransaction record may be identified. The transaction record maycorrespond to a purchase of the product. The transaction record mayinclude one or more surcharge attributes associated with the purchase.

The computer readable program code may cause the computer to calculate asurcharge refund. The surcharge refund may correspond to a surchargeamount. The computer readable program code may cause the computer todetermine whether the chargeback amount includes the surcharge refund.When a product is returned to a merchant, the computer may determinewhether the customer has received a refund of the surcharge amountcharged at the time of purchase.

The computer readable program code may cause the computer to identify atransaction record corresponding to the chargeback record. Thecorresponding transaction record may include transaction attributesavailable at the time of the purchase. The computer readable programcode may cause the computer to identify in the corresponding transactionrecord, a purchase amount, and a surcharge amount. The computer readableprogram code may cause the computer to associate the chargeback recordwith a surcharge violation when the chargeback amount does notcorrespond to a sum of (a) the purchase amount and (b) the surchargeamount.

The computer readable program code may cause the computer to identify ageographic value in the corresponding transaction record. The computerreadable program code may cause the computer to determine if thegeographic value corresponds to a jurisdiction that forbids imposing asurcharge on a credit card transaction. The computer readable programcode may cause the computer to associate the corresponding transactionrecord with a surcharge violation when the geographic value correspondsto the jurisdiction, and the corresponding transaction record includes asurcharge amount. When the corresponding transaction record includes thesurcharge amount, a surcharge had been imposed on the transaction at thetime of purchase. Because the corresponding transaction record indicatesthat the transaction occurred in a jurisdiction that forbidssurcharging, under the law of the jurisdiction the surcharge isunlawful.

When the corresponding transaction record is associated with a surchargeerror, the computer may determine a surcharge refund amount. Thesurcharge refund amount may correspond to all or a portion of thesurcharge amount associated with the corresponding transaction record.The surcharge refund amount may correspond to a difference between anallowable surcharge amount and an erroneously calculated surchargeamount. The surcharge violation may be any suitable surcharge violation.

The computer readable program code may cause the computer to identify,in the corresponding transaction record, a transaction attributecorresponding to time-of-sale. The computer readable program code maycause the computer to identify a surcharge in effect at thetime-of-sale. The computer readable program code may cause the computerto determine the surcharge refund based on the surcharge and thepurchase amount. The purchase amount may correspond to a purchase amountof a single item. The purchase amount may correspond to a purchaseamount of a plurality of items.

For example, having determined a surcharge fraction in effect on a dateassociated with a past purchase, the refund amount may be determinedbased on product of the surcharge fraction in effect on the date and thepurchase amount.

The computer readable program code may cause the computer to determinethe chargeback amount based on the purchase amount and the surchargerefund. The chargeback amount may correspond to a sum of a purchaseprice paid for a product and the surcharge amount imposed at the time ofpurchase.

The computer readable program code may cause the computer to determinethe chargeback amount based on one or more transaction attributes in atransaction record. The transaction record may correspond to atransaction record generated at a time of purchase. The transactionattributes may include a total purchase amount, a per-item purchaseamount and a surcharge attribute.

For example, a customer may purchase a plurality of items. The customermay wish to return less than all of the plurality of items. Thesurcharge refund amount may be determined based on apportioning thesurcharge amount in the transaction record. The apportioning may bebased on a ratio of: (1) a total of the purchase amounts of each of theitems the customer wishes to return, and (2) a total of the purchaseamounts of all of the plurality of items purchased.

The steps of illustrative methods may be performed in an order otherthan the order shown and/or described herein. Some embodiments may omitsteps shown and/or described in connection with the illustrativemethods. Some embodiments may include steps that are neither shown nordescribed in connection with the illustrative methods. Illustrativemethod steps may be combined. For example, one illustrative method mayinclude steps shown in connection with another illustrative method.

Some embodiments may omit features shown and/or described in connectionwith the illustrative apparatus. Some embodiments may include featuresthat are neither shown nor described in connection with the illustrativeapparatus. Features of illustrative apparatus may be combined. Forexample, one illustrative embodiment may include features shown inconnection with another illustrative embodiment.

Embodiments may involve some or all of the features of the illustrativeapparatus and/or some or all of the steps of the illustrative methods.

Illustrative embodiments of apparatus and methods in accordance with theprinciples of the disclosure will now be described with reference to theaccompanying drawings, which form a part hereof. It is to be understoodthat other embodiments may be utilized and structural, functional andprocedural modifications may be made without departing from the scopeand spirit of the present disclosure.

As will be appreciated by one of skill in the art, the disclosuredescribed herein may be embodied in whole or in part as a method, a dataprocessing system, or a computer program product. Accordingly, thedisclosure may take the form of an entirely hardware embodiment, anentirely software embodiment or an embodiment combining software,hardware and any other suitable approach or apparatus.

Furthermore, such aspects may take the form of a computer programproduct stored by one or more computer-readable storage media havingcomputer-readable program code, or instructions, embodied in or on thestorage media. Any suitable computer readable storage media may beutilized, including hard disks, CD-ROMs, optical storage devices,magnetic storage devices, and/or any combination thereof. In addition,various signals representing data or events as described herein may betransferred between a source and a destination in the form ofelectromagnetic waves traveling through signal-conducting media such asmetal wires, optical fibers, and/or wireless transmission media (e.g.,air and/or space).

FIG. 2 is a block diagram that illustrates a generic computing device201 (alternatively referred to herein as a “server”) that may be usedaccording to an illustrative embodiment of the disclosure. The computerserver 201 may have a processor 203 for controlling overall operation ofthe server and its associated components, including RAM 205, ROM 207,input/output module 209, and memory 215. Server 201 may include one ormore receiver modules, server modules and processors that may beconfigured to receive transaction records, apply surcharge rules,identify surcharge violations, compare values, establish correlationsand perform any other suitable tasks related to determining thetransaction cost.

Input/output (“I/O”) module 209 may include a microphone, keypad, touchscreen, and/or stylus through which a user of device 201 may provideinput, and may also include one or more of a speaker for providing audiooutput and a video display device for providing textual, audiovisualand/or graphical output. Software may be stored within memory 215 and/orstorage to provide instructions to processor 203 for enabling server 201to perform various functions. For example, memory 215 may store softwareused by server 201, such as an operating system 217, applicationprograms 219, and an associated database 211. Alternatively, some or allof server 201 computer executable instructions may be embodied inhardware or firmware (not shown). As described in detail below, database211 may provide storage for customer information, transaction costinformation, transaction records, transaction attributes, surchargerecords, chargeback records, thresholds, merchant information, surchargerules, payment instrument information and any other suitableinformation.

Server 201 may operate in a networked environment supporting connectionsto one or more remote computers, such as terminals 241 and 251.Terminals 241 and 251 may be personal computers or servers that includemany or all of the elements described above relative to server 201. Thenetwork connections depicted in FIG. 2 include a local area network(LAN) 225 and a wide area network (WAN) 229, but may also include othernetworks. When used in a LAN networking environment, computer 201 isconnected to LAN 225 through a network interface or adapter 213. Whenused in a WAN networking environment, server 201 may include a modem 227or other means for establishing communications over WAN 229, such asInternet 231. It will be appreciated that the network connections shownare illustrative and other means of establishing a communications linkbetween the computers may be used. The existence of any of variouswell-known protocols such as TCP/IP, Ethernet, FTP, HTTP and the like ispresumed, and the system can be operated in a client-serverconfiguration to permit a user to retrieve web pages from a web-basedserver. Any of various conventional web browsers can be used to displayand manipulate data on web pages.

Additionally, application program 219, which may be used by server 201,may include computer executable instructions for invoking userfunctionality related to communication, such as email, short messageservice (“SMS”), and voice input and speech recognition applications.

Computing device 201 and/or terminals 241 or 251 may also be mobileterminals including various other components, such as a battery,speaker, and antennas (not shown).

Terminal 251 and/or terminal 241 may be portable devices such as alaptop, smart phone, tablet, or any other suitable device for storing,transmitting and/or transporting relevant information.

Any information described above in connection with database 211, and anyother suitable information, may be stored in memory 215.

One or more of applications 219 may include one or more algorithms thatmay be used to receive transaction records, identify surchargeviolations, apply surcharge rules, determine refund amounts and performany other suitable tasks related to determining a transaction cost.

The disclosure may be operational with numerous other general purpose orspecial purpose computing system environments or configurations.Examples of well-known computing systems, environments, and/orconfigurations that may be suitable for use with the disclosure include,but are not limited to, personal computers, server computers, hand-heldor laptop devices, mobile phones and/or other personal digitalassistants (“PDAs”), multiprocessor systems, microprocessor-basedsystems, set top boxes, tablets, programmable consumer electronics,network PCs, minicomputers, mainframe computers, distributed computingenvironments that include any of the above systems or devices, and thelike. In a distributed computing environment, devices that perform thesame or similar function may be viewed as being part of a “module” evenif the devices are separate (whether local or remote) from each other.

The disclosure may be described in the general context ofcomputer-executable instructions, such as program modules, beingexecuted by a computer. Generally, program modules may include routines,programs, objects, components, data structures, etc., that performparticular tasks or store or process data structures, objects and otherdata types. The disclosure may also be practiced in distributedcomputing environments where tasks are performed by separate (local orremote) processing devices that are linked through a communicationsnetwork. In a distributed computing environment, program modules may belocated in both local and remote computer storage media including memorystorage devices.

FIG. 3 shows illustrative credit card transaction settlement flow 300.

At step 1 card holder 301 may offer a payment instrument, such as acredit card, as payment for $100 of goods sold by merchant 303. Cardholder 301 may present information associated with the credit card atthe merchant's point-of-sale terminal (not shown). The information maybe presented via the payment instrument, a loyalty card or any othersuitable device or method.

Based on the information presented by card holder 301, surcharge engine305 may determine an offset amount. The surcharge engine may determineone or more surcharge attributes. The offset amount may be based on thesurcharge fraction.

The offset amount may be added to the $100 price charged by merchant303. The $100 price may include the offset amount. A total amount may bedetermined. The total amount may include the price, offset amount, salestax and any other suitable costs associated with the purchase of thegoods.

The information presented by card holder 301, may be transmitted viaelectronic communication network 309 to transaction network 311. Theinformation may include a transaction record.

Transaction network 311 may receive the information presented by cardholder 301 via electronic network 309. Based on the receivedinformation, transaction network 311 may transmit an authorization, viaelectronic communication network 309, to merchant 303. Transactionnetwork 311 may communicate with issuer 307. Transaction network 311 mayverify that card holder 301 has not exceeded a credit limit associatedwith the payment instrument. The authorization may include an indicationthat the transaction network has approved a charge of the total amountto an account associated with the payment instrument. Authorizationservices may be provided by a third party such as a transaction broker.

Card holder 301 may acknowledge the total amount. The acknowledgementmay include an agreement by card holder 301 to place the charge on theaccount associated with the payment instrument. The acknowledgement mayinclude a commitment by the card holder to pay the total amount toissuer 307.

At step 2, issuer 307 may prepare a statement for card holder 301. Thestatement may include the total amount owed to issuer 307. The statementmay include interest or other fees owed to issuer 307. Issuer 307 maybear an expense of collecting the total amount, interest and fees fromcard holder 301. A portion of the transaction cost may flow to issuer307 to fund collection efforts of issuer 307 and offset a risk ofdefault of card holder 301.

At step 3, merchant 303 may present the acknowledgment of card holder301 and/or the associated authorization by transaction network 311 toacquirer 313. Acquirer 313 may transfer funds to merchant 303 prior toactual collection, by issuer 307, of the total amount from card holder301. Acquirer 313 may offer funds to merchant 303 prior to settlementbetween acquirer 313 and issuer 307.

Acquirer 313 may deduct a merchant discount from an amount of fundstransferred to merchant 303. The offset amount determined by surchargeengine 305 may offset, at least in part, the merchant discount paid bymerchant 303. The offset amount may correspond to transaction costscharged by transaction network 311. The offset amount may includetransaction costs charged by acquirer 313 and issuer 307.

In flow 300, the merchant discount is 2% of the $100 price. Without anoffset, merchant 303 receives $98 of the $100 price.

At step 4, acquirer 313 settles the transaction with issuer 307.Acquirer 313 may utilize transaction network 311 to settle thetransaction. Acquirer 313 may utilize broker 315 to settle thetransaction. Broker 315 may offer settlement services at a lowertransaction cost than transaction network 311. Broker 315 may offer thelower transaction costs as a result of aggregating transactions fromdifferent acquirers. Each of the aggregated transactions may requiresettlement between issuer 307 and acquirer 313.

Step 4 shows that at least a portion of the merchant discount flowsthrough transaction network 311 from acquirer 313 to issuer 307. Step 4also shows that transaction network 311 may receive a network fee fromacquirer 313. Step 4 also shows that transaction network 311 receives anetwork fee from issuer 307. Acquirer 313 and issuer 307 may paytransaction network 311 network fees for facilitating settlement of thetransaction.

Table 7 shows net positions of the parties to flow 300.

TABLE 7 Net positions. Party Net ($) Issuer 1.45 Acquirer 0.43 Network0.12 Merchant 0 Customer −2.00

Table 8 shows benefits of flow 300 to the transaction participants.

TABLE 8 Illustrative benefits of each transaction participant. PartyBenefit Merchant Access to card holder funds and credit Timelysettlement Protection from customer fraud and credit risk Increasedpurchase price amounts Payment guaranteed Issuer Reliable paymentplatform with broad acceptance Consistent customer experience acrossmerchants Predictable source of revenue to support card issuance costsCard holder Access to ready funds and credit Ability to make purchasesvirtually anywhere Protection from fraud Protection from merchantdisputes Reward for card based purchases Does not need to carry cashTransaction Broker Revenue from trading transaction processing bidsReliable routing platform Reducing transaction processing overheadAccess to consumers and suppliers of transaction services

FIG. 4 shows illustrative apparatus 400. Apparatus 400 includes mobiledevice 407 configured to process instructions from an exemplary mobiledevice application (“application”). The application may instruct device407 to display options 401, 403 and 405. Options 401, 403 and 405 may beutilized by a user of the mobile phone.

Using option 401, the user may view surcharge compliance and violationinformation. Mobile device 407 may receive instructions from theapplication to access surcharge compliance and violation informationstored in an online surcharge registry. Using option 403, the user mayuse mobile device 407 to report a surcharge violation. Option 405 allowsthe user to report surcharge compliance using mobile device 407.

FIG. 5 shows illustrative apparatus 500. Apparatus 500 includes mobiledevice 407 following selection of option 401 (shown in FIG. 4). Inresponse to the utilization of option 401, mobile device 407 displaysoptions 501-509. Options 501-509 allow the user to view surchargecompliance/violation information. Options 501-509 allow the user to viewsurcharge compliance/violation information based on various criteria.

For example, option 501 allows the user to view surchargecompliance/violations associated with a merchant. The user may enter amerchant name or identifier into field 511. Drop-down arrow 513 allowsthe user to select a merchant from a plurality of pre-populated choices.The pre-populated choices may be determined based on a location of themobile device. For example, the pre-populated choices may includemerchant locations within a radius of the mobile device.

Option 503 allows the user to view surcharge compliance/violationinformation associated with a payment instrument. The user may enterpayment instrument information. The payment instrument information mayinclude a brand, product or any suitable payment instrument attribute.The user may choose from one of a plurality of pre-populated paymentinstrument choices. The pre-populated payment instrument choices may bedetermined based on the merchant identified in option 501. For example,the pre-populated choice may include payment instruments accepted by themerchant identified in option 501.

Option 505 allows the user to view surcharge compliance/violationinformation associated with a merchant category code (“MCC”). The usermay enter the MCC. The user may select from one of a plurality ofpre-populated MCC choices. The pre-populated MCC choices may bedetermined based on the merchant identified in option 501 and/or thepayment instrument identified in option 503. For example, thepre-populated choice may include MCCs associated with the merchantidentified in option 501.

Option 507 allows the user to view surcharge compliance/violationinformation associated with a merchant location. The user may enter thelocation. The user may choose from one of a plurality of pre-populatedchoices. The pre-populated choices may be determined based on theinformation entered using options 501, 503 and/or 505. For example, thepre-populated choice may include locations that accept the paymentinstrument selected in option 503. The pre-populated choices may includemerchant locations that offer products categorized in the MCC selectedin option 505 and where a payment instrument selected in option 503 isaccepted.

The user may use option 509 to transmit the request to for surchargecompliance/violation information. The submitted request includes anyuser selection made using options 501-507.

FIG. 6 shows illustrative apparatus 600. Apparatus 600 includes mobiledevice 407 following selection of option 509 (shown in FIG. 5).Apparatus 600 displays an illustrative surcharge compliance/violationreport. The report may be generated based on criteria entered intooptions 501-507 (shown in FIG. 5).

The report identifies merchant 601. The report includes compliance score602 and violation score 603. Using option 607 the user views detailregarding surcharge violations associated with merchant 601. The usermay select option 609 to sort the compliance/violation informationassociated with merchant 601 based on payment instruments accepted bymerchant 601. The user may use option 611 to submit acompliance/violation report associated with merchant 601.

Apparatus 600 may display tip 613. Tip 613 may display a surchargepromotion being offered by merchant 601.

FIG. 7 shows illustrative apparatus 700. Apparatus 700 includes mobiledevice 407 following utilization of option 611 (shown in FIG. 6). Inresponse to the utilization of option 611, mobile device 407 displays anillustrative digital form for reporting a surcharge violation. Thedigital form includes options 701-711.

Option 701 allows the user to input a transaction. The selectedtransaction may include a surcharge violation. The use may enter atransaction identifier into text box 713. Using drop-down arrow 715, theuser may choose a transaction from a list of transactions. The list oftransactions may include transactions that have been initiated using themobile device. The list of transactions may include transactionsassociated with merchant 601 (shown in FIG. 6). In some embodiments,using drop-down arrow 713 may present a list of transaction attributes.The user may select the transaction based on a time, a location or anysuitable transaction attribute.

Using option 703 the user may attach an image or record to the violationsubmission. Using option 705 the user may input a violation type. Forexample, the user may specify that the violation observed corresponds toan unlawful surcharge. Using option 707 the user may input a merchantassociated with the surcharge violation. The user may also input apayment instrument associated with the violation using option 709. Theuser may submit the digital form using option 711. Based on theinformation input into the digital form via options 701-709, a system(not shown) may attempt to identify and/or confirm a surchargeviolation.

FIG. 8 shows illustrative apparatus 800. Apparatus 800 includes mobiledevice 407 following utilization of option 405 (shown in FIG. 4). Inresponse to the utilization of option 405, mobile device 407 displays anillustrative digital form for reporting surcharge compliance. Thedigital form includes options 801-805.

The user may input a merchant using option 801. The user may input apayment instrument using option 803. The user may input a location usingoption 805.

The user may attach corroborating information using options 807-811. Thecorroborating information may support the user's assertion that themerchant has imposed a compliant surcharge. The user may attach adigital receipt using option 807. The digital receipt may be an image ofa receipt. The digital receipt may be a receipt received in response topurchasing a product using mobile device 407 to present paymentinstrument information. The user may submit the digital form usingoption 813.

FIG. 9 shows illustrative receipt image 900. Image 900 includesillustrative segments 901-913. Each of segments 901-913 may correspondto a transaction attribute. Information from segments 901-913 may beextracted from image 900. The information extracted from image 900 maybe used to identify a surcharge violation. The information extractedfrom image 900 may be used to confirm a reported surcharge violation.

Segment 913 shows an illustrative surcharge certification. Segment 913may show that image 900 has been certified as being “compliant.” Segment913 may show that surcharge amount 911 has been certified as beingcompliant with one or more surcharge rules.

Segment 913 may show that image 900 has been certified as being “inviolation.” Segment 913 may show that surcharge amount 911 has beencertified as being in violation of one or more surcharge rules.

FIG. 10 shows illustrative scenario 1000. Scenario 1000 may includedisplay 1003. Display 1003 may be positioned at a point-of-entry to amerchant location. Display 1003 may present surcharge information tocustomer 1005. Display 1003 may show special surcharges or rankedsurcharges being offered by a merchant. Display 1003 shows thesurcharges ranked from lowest to highest. Display 1003 shows that themerchant is offering “surcharge free” purchases if the customer utilizesa self-checkout line. Display 1003 shows that a surcharge may be basedon the issuer associated with a payment instrument. Display 1003 showsthat the surcharge may be based on the transaction network associatedwith a payment instrument.

Customer 1005 may possess one or more payment instrument in purse 1007.Upon viewing the surcharge information present by display 1003, customermay decide whether or not to make a purchase at the merchant location.Upon viewing the surcharge information presented by display 1003,customer may decide which payment instrument to use to make a purchaseat the merchant location.

Customer 1005 may make a purchase at the merchant location using acredit card associated with Bank 1. Customer 1005 may be charged asurcharge amount that is based on a surcharge fraction of 0.02%. Thesurcharge amount may be printed on a receipt, such as receipt 900 (shownin FIG. 9) issued to customer 1005. Customer 1005 may submit a surchargeviolation report using a digital form shown in FIG. 7. Customer 1005 mayobtain an image of sign 1003 using a mobile device. Customer 1005 mayattach the image of sign 1003 to the surcharge violation report usingoption 703 (shown in FIG. 7). The attached image of sign 1003 maycorroborate the claim that the surcharge fraction associated with creditcards issued by Bank 1 should have been 0.01%.

The mobile device may associate the image of sign 1003 with a timeand/or location stamp. The time and/or location stamp may corroboratethat the image was obtained at a time and location associated themerchant location where customer 1005 claims a surcharge violationoccurred. The image of sign 1003 may demonstrate that the merchant hasviolated a disclosure requirement associated with imposing a surcharge.

FIG. 11 shows illustrative surcharge schedule 1100. Schedule 1100 showssurcharges S1-S4. Each surcharge is associated with a weekday.

Schedule 1100 shows that surcharge S1 is scheduled to be imposed onTuesday the 16^(th). Schedule 1100 also shows that surcharge S1 isassociated with a notice time of Monday the 1^(st). On Monday the1^(st), one or more surcharge attributes associated with surcharge S1may be presented on one or more displays. The notice time associatedwith S1 corresponds to nine weekdays.

Schedule 1100 shows that surcharge S2 is scheduled to be imposed onWednesday the 17^(th) and is associated with a notice time of Thursdaythe 4^(th). On Thursday the 4^(th), one or more surcharge attributesassociated with surcharge S2 may be presented on one or more displays.The notice time associated with S2 corresponds to seven weekdays.

Schedule 1100 shows that surcharge S3 is scheduled to be imposed onTuesday the 23^(rd) and is not associated with a notice time earlierthan the day the surcharge is imposed. On Tuesday the 23^(rd), one ormore surcharge attributes associated with surcharge S3 may be presentedon one or more displays. S3 may correspond to a reduction of surchargesS1 and/or S2.

Schedule 1100 shows that surcharge S4 is scheduled to be imposed onWednesday the 24^(th) and is associated with a notice time of Tuesdaythe 2^(nd). On Tuesday the 2^(nd), one or more surcharge attributesassociated with surcharge S4 may be presented on one or more displays.The notice time associated with S4 corresponds to thirteen weekdays.

FIG. 12 shows illustrative surcharge notice 1200. Surcharge notice 1200may present surcharge information. The surcharge information may includepayment instrument brands 1203, surcharge 1205 and surcharge exceptions1207.

Surcharge notice 1200 includes four exemplary brands 1203. A paymentinstrument may be associated with one or more of the four brands 1203. Abrand may correspond to an issuer of the payment instrument. A brand maycorrespond to a transaction network affiliated with the paymentinstrument. Each brand is associated with a surcharge 1205.

For example, Bank 2 is associated with a first surcharge and a secondsurcharge. The first surcharge includes a surcharge fraction of 1/100.The first surcharge is imposed on all purchases. The second surchargeincludes the surcharge fraction and a fixed amount of 50¢. The secondsurcharge is imposed on purchases valued less than $10.

Surcharge notice 1200 indicates that each brand 1203 may be associatedwith a surcharge exception 1207. The surcharge exception 1207 mayindicate that, under certain conditions, a payment instrument may beexempt from the surcharge. For example, surcharge notice 1200 shows thatpayment instruments issued by Bank 2 are exempt from the surcharge ifthe payment instrument is associated with Transaction Network T.Transaction Network T may be the transaction network that processestransactions associated with payment instruments issued by Bank 2.

FIG. 13 shows illustrative transaction record 1300. Transaction record1300 may be generated based on transaction information received and/oravailable at a time of purchase. The transaction record may includepoint-of-sale (“POS”) attributes 1301. POS attributes 1301 may includetransaction information, customer information and merchant information.Exemplary POS attributes 1301 may include a date, a time, a check-outlane indicator or any suitable transaction attribute available at apoint-of-sale.

Transaction record 1300 may include surcharge attributes 1303. Exemplarysurcharge attributes 1303 may include a surcharge amount, maximumsurcharge amount, surcharge fraction, transaction cost or other suitablesurcharge information.

Transaction record 1300 may include synoptic attributes 1305. Synopticattributes 1305 may include attributes derived based on othertransaction attributes. Synoptic attributes 1305 may include attributesderived based on other transaction attributes. The synoptic attributesmay be determined based on a pattern detected in a plurality oftransaction records. Exemplary synoptic attributes may include amerchant transaction statistic, a market statistic and an issuerstatistic. The synoptic attributes 1305 may be concatenated totransaction record 1300. Synoptic attributes 1305 may be concatenated totransaction record 1300 after execution of the transaction.

FIG. 14 shows illustrative POS attributes 1401 and illustrative synopticattributes 1403. POS attributes 1401 may include location 1404. Location1404 may be associated with a POS terminal. Location 1404 may beassociated with an address. POS attributes 1401 may include time 1413and date 1408. POS attributes 1401 may include amount 1410 and number ofitems 1412. Amount 1410 may correspond to a price of the product. Numberof items 1412 may correspond to a number of items purchased by acustomer in a transaction.

POS attributes 1401 may include state/province 1414. State/province 1414may be associated with regulations governing imposition of a surcharge.

POS attributes 1401 may include checkout number 1418. A merchant mayimpose a different surcharge at different check-out lines. The merchantmay offer no or a reduced surcharge if a self-checkout line is utilized.The self-checkout line may be associated with a checkout number 1418.

POS attributes 1401 may include credit card type 1420. Credit card type1420 may correspond to the payment instrument presented by a customer topay for a purchase. A surcharge schedule or surcharge amount may beassociated with credit card type 1420.

POS attributes 1401 may include merchant category code (“MCC”) 1422. MCC1422 may group merchants that supply similar products. Some merchants inMCC 1422 may impose a surcharge, while others may not. Merchants withinMCC 1422 may surcharge at different rates or amounts.

FIG. 14 includes synoptic attributes 1403. Synoptic attributes 1403 mayinclude transaction volume 1421, total sales 1423 and fiscal period1425. Fiscal period 1425 may be determined based on a time associatedwith transaction record 1300. Transaction volume 1421 and total sales1423 may be associated with fiscal period 1425.

For example, transaction records may be sorted by date 1408 and location1404. A first number of transaction records may include the month ofSeptember and an address on Main Street. The first number may beappended to each transaction record that includes the date in Septemberand the address on Main Street. The first number may correspond totransaction volume 1421. The first number may be a synoptic attribute. Asecond number of transaction records may include a date in the month ofAugust and the address on Main Street. The second number may be asynoptic attribute.

The first number may be compared to the second number. A result of thecomparing may be a synoptic attribute. The first number may beconcatenated to transaction records that include the date in September.The second number may be concatenated to transaction records thatinclude the date in August. A result of the comparing may beconcatenated to transaction records that include either the date inAugust or the date in September.

Synoptic attributes 1403 may include credit card payment ratio 1427.Credit card payment ratio 1427 may include a comparison of a number ofpurchases made using a credit card to a number of purchases made usingalternative payment methods. The ratio may be computed for a particularmerchant, MCC, time/date, location credit card type or other suitabletransaction attribute.

Synoptic attributes 1403 may include transaction frequency 1429, totaltransactions per credit card type 1433 and average transaction cost1435. Average transaction cost 1435 may be calculated for a plurality oftransaction records.

For example, each transaction record that includes a particular POSattribute, such as a purchase made at location X, may include a variabletransaction cost Y. Transaction cost Y may vary based on transactionattributes present in a transaction record. The transaction cost Y maycorrespond to a surcharge attribute (shown above in Table 4). Averagetransaction cost 1435 may correspond to an average transaction costassociated with location X. Average transaction cost 1435 may beappended to each transaction record that includes the attributecorresponding to location X.

Synoptic attributes 1403 may include credit risk 1437. An issuer mayassociate each authorized transaction with a credit risk. The issuer mayappend the credit risk to the transaction record. The credit risk may bedetermined based on a credit history associated with credit card type1420. The credit risk may be determined based on a credit historyassociated with the purchasing customer.

FIG. 15 shows illustrative surcharge record 1500. Surcharge record 1500may include surcharge attributes 1503-1521. Each of attributes 1503-1521may correspond to a value. Each of attributes 1503-1521 may beidentified in a transaction record such as transaction record 1300(shown in FIG. 13).

A surcharge violation may be determined based on comparing one or moreof attributes 1503-1521 to surcharge reference values 1501. Surchargereference values 1501 may include values that correspond to surchargeattributes 1523-1537. Surcharge reference values 1501 may be determinedbased on one or more surcharge rules.

For example, max allowable surcharge fraction 1529 may be compared tosurcharge fraction 1511. If surcharge fraction 1511 exceeds maxallowable surcharge fraction 1529, surcharge record 1500 may beassociated with a surcharge violation.

FIG. 16 shows illustrative scenario 1600. Scenario 1600 shows customer1607 at a point-of-sale. At the point-of-sale, customer 1607 may placepurse 1609 on counter 1611. Counter 1611 may include a transceiver (notshown). The transceiver may communicate with one or more paymentinstruments inside purse 1609. The transceiver may receive paymentinstrument information from the one or more payment instruments.

Based on the payment instrument information, display 1605 may presentsurcharge information to customer 1607. FIG. 16 shows that display 1605is informing customer 1607 that a surcharge violation has been detected.In response to the surcharge violation, customer 1607 may abort thetransaction. In response to the surcharge violation a merchant may waivethe surcharge associated with the received payment instrumentinformation.

FIG. 17 shows illustrative chargeback record 1700. Chargeback record1700 may include a plurality of chargeback attributes. Chargeback record1700 may be associated with transaction record 1701. Chargeback record1700 may be associated with transaction record 1701. Chargeback record1700 may be associated with transaction record 1701 based on one or moreattribute shared by records 1700 and 1701. For example, chargebackrecord 1700 may be associated with transaction record 1701 based ontransaction ID 1703.

Based on transaction attributes included in transaction record 1701, asurcharge refund amount may be determined. The surcharge refund may bedetermined for one of a plurality of items 1707 included in transactionrecord 1701. For example, a customer may wish to return a productcorresponding to item ID 1705. The product corresponding to item ID 1705may be one of the plurality of items 1707.

Surcharge refund amount 1709 may be determined for item ID 1705.Surcharge refund amount 1709 may be determined based on total surchargeamount 1711 and items purchased 1707. Surcharge refund amount 1709 maybe determined based on any suitable transaction attributes.

FIG. 18 shows illustrative credit card transaction flow 1800.Transaction flow 1800 may include one or more transaction steps incommon with transaction flow 300 (shown above in FIG. 3). Merchant 1803may capture customer information using a POS terminal.

Transaction flow 1800 shows that at step 5, a surcharge violation isdetected. The surcharge violation may be that merchant 1803 chargedcustomer 1801 an excessive surcharge amount. The surcharge violation maybe detected may any suitable apparatus shown in FIG. 18. For example,the surcharge violation may be detected by surcharge engine 1805.

In response to the surcharge violation, at step 6, issuer 1807 transmitsa disable signal to merchant 1803. FIG. 18 shows issuer 1807transmitting the disable signal directly to merchant 1803. In someembodiments, a disable signal may be transmitted by surcharge engine1805. A disable signal may be transmitted by loading executableinstructions onto a payment instrument used by customer 1801. Thedisable signal may affect operation of one or more POS terminals ofmerchant 1803. For example, the disable signal may affect a target POSterminal at merchant 1803. In some embodiments, the disable signal mayaffect operation of any suitable component of a merchant POS system,such as a POS controller.

FIG. 19 shows illustrative components and connections of surchargeengine 1901. Surcharge engine 1901 may include one or more features ofsurcharge engine 305 (shown in FIG. 3) or surcharge engine 1805 (shownin FIG. 18). In some embodiments, surcharge engine 1901 may includeauthorization engine 1907. In some embodiments, surcharge engine 1901may include connections to other transaction participant systems.Surcharge engine 1901 may communicate with one or more transactionparticipant system using network 1903.

FIG. 19 shows that surcharge engine 1901 may include a connection tomerchant POS system 1905. A customer may purchase goods by transferringcustomer information from a payment instrument, such as a credit card,to POS terminal 1923. POS terminal 1923 may read the customerinformation stored on the payment instrument. For example, POS terminal1923 may include or be linked to a card reader. The payment instrumentmay store data in a magnetic strip, a bar code, a chip or any othersuitable data storage device or format. The customer information mayinclude issuer information, account information and any other suitableinformation (see Tables 4-6, shown above).

POS terminal 1923 may transmit transaction information to POS controller1921. The transaction information may include some or all of thecustomer information and any other suitable information, such as thetransaction amount, information regarding the purchased goods and/or oneor more values corresponding to one or more transaction attributes.

POS controller 1921 may act as a server for providing user prompts anddisplay layout information to one or more POS terminals such as POSterminal 1923. POS controller 1921 may receive transaction informationfrom one or more of the POS terminals.

POS controller 1921 may transmit the transaction information to hostdata capture system 1919. Host data capture system 1919 may storetransaction information received from POS controller 1921. Host datacapture system 1919 may also store accounting data, inventory data andother suitable data that may be used to determine an appropriatesurcharge. Some embodiments may not include host data capture system1919.

The transaction information may include merchant information. Themerchant information may include information about the merchant, themerchant's business, the merchant's network membership, the merchant'ssale metrics any other suitable information. The transaction informationmay be stored in any suitable element of merchant POS system 1905,network component 1903 and surcharge engine 1901.

POS controller 1921 may be configured to determine and/or apply asurcharge amount. In some embodiments, host data capture system 1919 maybe configured to determine and/or apply the surcharge amount. In someembodiments, POS controller 1921 may determine and/or apply a surchargeamount. The imposed surcharge amount may be displayed at POS terminal1923.

Surcharge engine 1901 may verify the surcharge amount imposed bymerchant POS system 1905. Surcharge engine 1901 may determine whethermerchant POS system 1905 has triggered a surcharge violation.

POS terminal 1923 may have one or more interactive features that thecustomer may use. The features may provide the customer with informationthat may help the customer decide whether to execute a transaction. Thecustomer may use the features to obtain more information about themerchant, the transaction, the transaction cost, transaction costsassociated with different payment instruments (e.g., credit cards, debitcards, instruments or devices that include a contact chip, such as anISO14443-compliant contactless chip, or other electronic purchasingdevices), surcharge or other suitable information.

Host data capture system 1919 may route the transaction record ontonetwork 1903. The routing may be governed by the transactioninformation. For example, the routing may be governed by a bank issuernumber (“BIN”) that is encoded in the customer's credit card.

Network 1903 may include a credit card network “processor,” which isknown to those of ordinary skill in the art. The illustrative systemsshown in FIG. 19 may include one or more other processors that performtasks that are appropriate for the components thereof.

Surcharge engine 1901 may monitor traffic on network 1903. Surchargeengine 1901 may intercept surcharged transactions routed by merchant POSsystem 1905 onto network 1903. Network 1903 may include a networkoperated by an acquirer such acquirer 313 (shown in FIG. 3). Network1903 may include a network operated by transaction processing network311 (shown in FIG. 3). Network 1903 may include a network operated byissuer 307 (shown in FIG. 3).

Surcharge engine 1901 may include authorization engine 1907.Authorization engine 1907 may render a transaction authorizationdecision based on a transaction record or transaction informationreceived from merchant POS system 1905. Authorization engine 1907 mayauthorize a surcharge amount independently of any other chargesassociated with a transaction (e.g., a purchase amount). In someembodiments, surcharge engine 1901 may transmit a transaction record toan issuer system for authorization of non-surcharge related amounts.

Surcharge engine 1901 includes analysis engine 1909. Analysis engine1909 may analyze surcharge attributes of a transaction record. Analysisengine 1909 may output a surcharge recommendation. The surchargerecommendation may recommend an adjustment to a surcharge amount.

Analysis engine 1909 may receive input from surcharge rules library1911. Surcharge rules library 1911 may determine whether a surchargeattribute in a transaction record conforms to a surcharge rule orregulations governing imposition of a surcharge amount.

Analysis engine 1909 may receive input recommendation engine 1915.Recommendation engine 1915 may determine a surcharge recommendation. Thesurcharge recommendation may be determined based on information storedin transaction record database 1913. An illustrative surchargerecommendation may suggest waiving a surcharge or adjusting a surchargeamount.

Transaction record database 1913 may store historical transactionrecords. The received transaction behavior information may be correlatedto information stored in transaction record database 1913. The surchargerecommendation may be determined based on the correlating.

Recommendation engine 1915 may determine the surcharge recommendationbased on synoptic statistics 1917. Synoptic statistics 1917 may includesensitivity of customer purchasing behavior to a surcharge amount withina particular market or geographic region. Synoptic statistics 1917 mayinclude issuer synoptic statistics. Exemplary issuer synoptic statisticsmay include an effect of the surcharge amount on revenue of an issuer orother transaction participant.

Surcharge engine 1901 may transmit authorizations of purchase andsurcharge amounts to merchant POS system 1905 through network 1903. Thesurcharge authorization information may include the authorizationdecision (e.g., “GRANTED” or “DENIED”).

In some embodiments, if surcharge engine 1901 detects a surchargeviolation, surcharge engine 1901 may disable one more components ofmerchant POS system 1905. For example, one or more components ofmerchant POS system 1905 may be disabled and unable to access othertransaction participant systems. Disabling may include preventing onemore components of merchant system 1905 from accessing acquirer 313,transaction processing network 311 and/or issuer 307 (all shown in FIG.3). Disabling may include preventing one more components of merchantsystem 1905 from accessing other transaction participant system by“blacklisting” merchant POS system 1905 on network 1903.

In some embodiments, a disable signal may be specific to a targetsystem. The target may be any suitable component of a transactionparticipant system, such as merchant POS system 1905 (shown in FIG. 19).The disable signal may prevent operation of the target system. Thedisable signal may power-off the target system or prevent the targetsystem from communicating with other transaction participant systemsover network 1809 (shown in FIG. 18).

FIG. 20 shows illustrative system 2000. System 2000 includes POScontroller 2003. POS controller 2003 may receive transaction informationfrom one or more of POS terminals 2001. POS terminals 2001 may includeone or more features of POS terminal 1923 (shown in FIG. 19).

A customer may purchase goods by transferring information from a paymentinstrument, such as a credit card, to one or more of POS terminals 2001.The information may be transferred by inserting a chip on the paymentinstrument into a card reader linked to one or more of POS terminals2001. Information transferred may include issuer information, accountinformation and any other suitable information.

POS controller 2003 may act as a computer server for providing userprompts and display layout information to one or more of POS terminals2001. POS controller 2001 may receive transaction information from oneor more of the POS terminals 2001. For example, POS controller 2005 mayreceive item scan information from POS terminals 2001.

The transaction information received from POS terminals 2001 may includeany suitable transaction attribute. Illustrative transaction attributesare shown above in Table 5. Transaction information may include atransaction record. POS controller 2003 may receive a transaction recordfrom POS terminals 2001. POS controller 2003 may transmit thetransaction record to network 2007.

Network 2007 may route transaction information to surcharge engine 2009.Surcharge engine may include one or more features of surcharge engine305 (shown in FIG. 3), surcharge engine 1805 (shown in FIG. 18) andsurcharge engine 1901 (shown in FIG. 19).

Surcharge engine 2009 may determine whether one or more of POS terminals2001 have triggered a surcharge violation. In response to detecting asurcharge violation, surcharge engine 2009 may transmit a disable signalto one or more of POS terminals 2001.

For example, in some embodiments, surcharge engine 2009 may transmit adisable signal to POS terminals 2001 via network 2007 and POS controller2003. In some embodiments, surcharge engine 2009 may configure cardreader 2005 to load executable instructions onto a chip on a paymentinstrument inserted into card reader 2005. Card reader 2005 may bepositioned at a location remote from POS controller 2003 or POSterminals 2001. For example, card reader 2005 may be part of an ATM orteller station operated by issuer 307 (shown in FIG. 3).

Surcharge engine 2009 may identify card reader 2005 based on alikelihood that card reader 2005 will receive a payment instrument thatmay subsequently be used at POS terminals 2001. Surcharge engine 2009may configure card reader 2005 (or associated apparatus, such as an ATM)to load instructions onto a chip on the payment instrument inserted intocard reader 2005.

The executable instructions, when run, may disable one or more of POSterminals 2001. POS terminals 2001 may be associated with their own cardreaders (not shown) that receive a chip programmed by card reader 2005and/or surcharge engine 2007.

FIG. 21 shows illustrative scenario 2100. Scenario 2100 shows customers2102 being served by clerks 2105 at checkout lanes 2102. Scenario 2100also shows customers 2104 using self-serve checkout lanes 2103.Customers 2102 and 2104 may present a payment instrument to pay forpurchases. Customers 2102 and 2104 may insert a chip on a paymentinstrument into a card reader and transfer information stored on thechip to a merchant POS system (such as merchant POS system 1905, shownin FIG. 19).

FIG. 22 shows illustrative payment instrument 2210. Payment instrument2210 may be used by customers 2102 and 2104 (shown in FIG. 21). Paymentinstrument 2210 includes opposing faces 2211 and 2213.

Payment instrument 2210 may include chip 2221 on face 2211. Chip 2221may be inserted into a card reader (not shown). The card reader mayextract information stored on chip 2221. The information stored on chip2221 may include copies of information printed or embossed on face 2211.

Chip 2221 may also store executable instructions. Executable instructionmay be pushed or loaded onto payment instrument 2210 in response todetecting a surcharge violation. The detected surcharge violation mayhave been triggered when payment instrument was used to conduct atransaction (for example, as shown in FIG. 21). A detected surchargeviolation may have been imposed on another customer (not the user ofpayment instrument 2210).

In some embodiments, chip 2221 may be positioned underneath a surface offace 2211. In such embodiments, chip 2221 (and information storedthereon) may be accessible via induction or other contactless methods ofelectronically transferring data and/or power.

Face 2213 may include magnetic stripe 2215. Magnetic stripe 2215 mayallow payment instrument 2210 to be used with card readers that readmagnetic stripes. For example, inserting payment instrument 2210 into acard reader may include swiping payment instrument 2210 through the cardreader.

FIG. 23 shows illustrative apparatus 2300. Apparatus 2300 includespayment instrument 2301. Payment instrument 2301 includes chip 2302. Insome embodiments chip 2302 may be an EMV chip.

Payment instrument 2301 may be used to conduct a transaction at a POSterminal that includes or is linked to card reader 2303. When chip 2302is inserted into card reader 2303, card reader 2303 may provide power tochip 2302. When chip 2303 is inserted into card reader 2303, data storedon chip 2303 may be transferred to card reader 2303.

Data stored on chip 2302 may include executable instructions. Theexecutable instructions may, after being read or extracted by cardreader 2303, trigger a disabling of a POS terminal (not shown) linked tocard reader 2303. Executable instructions may be loaded onto chip 2302when chip 2302 is inserted into another card reader (not shown). Theother card reader may include one or more features of card reader 2303.

FIG. 24 shows illustrative payment instrument 2400. Payment instrument2400 includes display 2405. Payment instrument 2400 includes chip 2403.Chip 2403 may include a transceiver that wirelessly receivesinformation. The received information may be stored on paymentinstrument 2400. Chip 2403 may wirelessly transmit information stored onpayment instrument 2400. The information stored and/or transmitted topayment instrument 2400 via chip 2403 may include surcharge attributes(illustrative attributes listed in Table 4), transaction attributes(illustrative attributes listed in Table 5) and/or payment instrumentattributes (illustrative attributes listed in Table 6).

For example, chip 2403 may transmit an identity of the paymentinstrument to a POS terminal (shown in FIG. 19, item 1923). A POScontroller (shown in FIG. 19, item 1921) may determine a surchargeamount associated with the identity. The surcharge amount may bereceived by chip 2403. Display 2405 may present the surcharge amount tothe customer in possession of payment instrument 2400.

Payment instrument 2400 may store a “surcharge history.” When paymentinstrument 2400 later communicates with a card reader, executableinstructions may be loaded onto payment instrument 2400. For example,when payment instrument 2400 communicates with an ATM of an issuer, theATM may be configured to extract and/or examine the surcharge historystored on payment instrument 2400. When examining the surcharge history,the ATM may identify one or more surcharge violations associated withpayment instrument 2400.

The ATM may then load executable instructions onto payment instrument2400 that are configured to disable a target POS terminal associatedwith the identified surcharge violations. When payment instrument 2400subsequently communicates with the target POS terminal (e.g., via anassociated card reader), the instructions may trigger a disabling of thetarget POS terminal.

FIG. 25 shows illustrative process flow 2500. Process flow may begin atstep 1. Step 1 shows POS terminal 2501 communicating with associatedcard reader 2503. Customer 2502 has inserted payment instrument 2509into card reader 2503. For example, customer 2502 may insert paymentinstrument 2509 into card reader 2503 to complete a purchase or othertransaction at POS terminal 2501.

At step 2, surcharge engine 2507 examines one or more attributesassociated the transaction conducted in step 1. Surcharge engine 2507may include one or more features of surcharge engine 305 (shown in FIG.3), surcharge engine 1805 (shown in FIG. 19), surcharge engine 1901(shown in FIG. 19) and surcharge engine 2009 (shown in FIG. 20). In someembodiments, surcharge attributes or other transaction information maybe stored on payment instrument 2509. Surcharge engine 2507 may detect asurcharge violation and determine whether remedial action is warranted.

If surcharge engine 2507 determines that remedial action is warranted,at step 3, surcharge engine 2507 may instruct ATM 2505 to loadexecutable instructions onto payment instrument 2509. The executableinstructions may be configured to disable POS terminal 2501 when paymentinstrument 2509 is inserted into card reader 2503. In some embodiments,communication with surcharge engine 2507 may be omitted. Informationstored on payment instrument 2509 may be later analyzed when paymentinstrument 2509 is inserted into ATM 2505.

Step 4 shows customer 2502 using payment instrument 2509 to access ATM2505. When customer 2502 accesses ATM 2505, executable instructions thatdisable POS terminal 2501 may be loaded onto payment instrument 2509.

Step 5 shows customer 2502 inserting payment instrument 2509 into cardreader 2503 a second time. For example, customer 2502 may return to amerchant location to make another purchase. FIG. 25 shows customer 2502using POS terminal 2501 and card reader 2503 to conduct anothertransaction.

At step 6, executable instructions loaded onto payment instrument 2509by ATM 2505 trigger a disabling of POS terminal 2501.

In some embodiments, when customer 2502 accesses any POS terminal at themerchant location to conduct another transaction, the executableinstructions loaded by ATM 2505 onto payment instrument 2509 may triggera disabling of POS terminal 2501.

Step 7 shows that in some embodiments, surcharge engine 2507 mayre-enable POS terminal 2501 after it has been disabled. In someembodiments, the executable instructions may disable POS terminal 2501for a pre-determined period of time.

FIG. 26 shows illustrative transaction flow 2600. At step 1, a customeruses a payment instrument to make a first purchase at a merchantlocation. The customer may use a first card reader linked to a POSterminal to complete the first purchase. At step 2, a surcharge enginedetects that the POS terminal has triggered a surcharge violation whenprocessing the first purchase.

At step 3, the surcharge engine communicates with a second card readerat a second location. In some embodiments, the surcharge engine maycommunicate with a device (e.g., ATM or teller station) at the secondlocation linked to the second card reader.

The surcharge engine may instruct the device or second card reader toload disabling instructions onto the payment instrument. At step 4, thecustomer inserts the payment instrument into the second card reader. Forexample, the customer may insert the payment instrument into the secondcard reader associated with an ATM to withdrawn cash.

At step 5, the second card reader transfers disabling instructions ontothe payment instrument. At step 6, the customer returns to the merchantlocation and uses the payment instrument to make a second purchase. Whenthe customer makes the second purchase, the disabling instructionsstored on the payment instrument are run. At step 7, running thedisabling instructions triggers a disabling of one or more POS terminalsat the merchant location.

One of ordinary skill in the art will appreciate that the steps shownand described herein may be performed in other than the recited orderand that one or more steps illustrated may be optional. The methods ofthe above-referenced embodiments may involve the use of any suitableelements, steps, computer-executable instructions, or computer-readabledata structures. In this regard, other embodiments are disclosed hereinas well that can be partially or wholly implemented on acomputer-readable medium, for example, by storing computer-executableinstructions or modules or by utilizing computer-readable datastructures.

Thus, systems and methods for determining compliance with surchargerules in connection with a transaction between two or more transactionparticipants have been provided. Persons skilled in the art willappreciate that the present disclosure can be practiced by other thanthe described embodiments, which are presented for purposes ofillustration rather than of limitation. The present disclosure islimited only by the claims that follow.

What is claimed is:
 1. A system for controlling operation of a targetpoint-of-sale (“POS”) terminal at a merchant location, the systemcomprising: a payment instrument comprising a reprogrammable chip; afirst card reader that is configured to: provide power to the chip; andload, onto the chip, executable instructions that, when run, power-offthe target POS terminal; and a second card reader linked to the targetPOS terminal that is configured to provide power to the chip and run theexecutable instructions loaded on the chip; wherein the executableinstructions, when run, power-off the target POS terminal within apre-determined period of time after the chip is inserted into the secondcard reader.
 2. The system of claim 1, wherein the executableinstructions, when run, power-off a plurality of POS terminals at themerchant location.
 3. The system of claim 1 wherein the first cardreader is positioned within an automated teller machine (“ATM”).
 4. Thesystem of claim 1 wherein the second card reader is at the merchantlocation.
 5. The system of claim 1 wherein, the executable instructionsfor powering-off the target POS terminal are further configured topower-on the target POS terminal after expiration of a pre-determinedperiod of time.
 6. A system for disabling a target point-of-sale (“POS”)terminal at a merchant location, the system comprising: a paymentinstrument comprising a chip; a first card reader linked to the targetPOS terminal that is configured to receive the chip; and a second cardreader that is configured to: receive the chip; associate the paymentinstrument with at least one surcharge violation imposed by the targetPOS terminal; set a flag on the chip that identifies the target POSterminal; and load, onto the chip, executable instructions that disablethe target POS terminal after the chip is received by the first cardreader; wherein the first card reader, in response to receiving the chipafter the executable instructions have been loaded onto the chip by thesecond card reader, is configured to: detect that the flag has been seton the chip; and trigger execution of the executable instructions on thechip and thereby disable the target POS terminal.
 7. The system of claim6 wherein the chip is an EMV chip.
 8. The system of claim 6 wherein thesecond card reader is embedded in an automated teller machine (“ATM”).9. The system of claim 6 wherein the executable instructions areconfigured to disable two or more target POS terminals at the merchantlocation.
 10. The system of claim 6 wherein the second card reader isconfigured to program a plurality of chips with executable instructionsthat disable the target POS terminal.
 11. The system of claim 6 wherein,before programming the chip, the second card reader is configured to:estimate a time when the chip is expected to be inserted into the secondcard reader; and program the chip when the estimate is less than athreshold period of time.
 12. The system of claim 11 wherein, theestimate is determined based on a transaction history associated withthe payment instrument.